You can reduce the risk of poor performance on your pension fund when adding monthly deposits rather than lump sum deposits.
Why does this differ from paying in a lump sum?Deciding on how you invest your money can have a positive or negative effect on the performance of your pension fund.
If you make a lump sum deposit payment to your pension fund it will be subject to the fluctuation of the funds value. Meaning if the fund is performing badly then so will your entire capital.
You can reduce the risk of poor performance on your capital when you make monthly payments, as it will fluctuate on an annual basis and there will be rises and fall throughout the year, so all your capital will not be affected.
Paying in monthly deposits can affect the type of fund or investment that you choose to invest your money in.
If you want to learn more about how to invest your money for your retirement see our pensions tips and pensions guide.
Compare pensions from top pension providers with our pensions comparison table.
