Choosing an option

Things to think about


The best investment strategy for you will depend on a number of factors. Here are some things to think about before you make a decision.

When are you likely to need your super?

This is one of the critical issues when you decide which option(s) you are going to invest in. As far as possible, you need to take a long term view. The longer you have to invest, the more time you have to ride out the times when returns from higher-risk investments are low or negative. The closer you are to retirement or requiring your super, the more likely you are to prefer a lower-risk, less volatile option.

Consider the cost of living as well

Inflation (the cost of living) impacts on the buying power of your savings. If your money consistently earns less after tax than the rate of inflation, it won't stretch as far even though its value is increasing.

Your personal feelings about investing

Your level of risk tolerance will affect your investment choices. Some investors are content to ride out periods of negative returns believing that what goes down must come up. Others would find that situation stressful and prefer to opt for investments that offer lower average returns but with less volatility.

If you have a high tolerance for risk, you are more likely to choose the Growth option. If you have a low tolerance for risk, you are likely to favour the Stable option or even the Cash Plus option.

Remember, too, your risk tolerance is likely to change over time. That's why it is a good idea to revisit your investment choices from time to time, say, every 5 years.

Your personal financial circumstances

Your strategy will also depend on your personal circumstances, for example, your age, when you intend to retire, how much you will need to live on, other investments you may have and the needs of your dependants.

How do you feel about risk? Take the quiz

Your age, years until retirement and your personal financial circumstances are just some of the things to think about when choosing an investment strategy. Use our Risk profiler to help understand how your approach to risk translates to the investment options available to you.

Contact an authorised financial advisor if you would like help choosing your investment option(s).



This website is provided by Mercer (N.Z) Limited on behalf of the trustee of the Police Superannuation Scheme (PSS). The trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.

PSS Trustees Limited is the issuer of the Police Superannuation Scheme (PSS). A copy of the PSS product disclosure statement is available under Documents and forms and at