James Johnsen: The importance of an active pension

History won’t be repeating itself

clock • 4 min read

James Johnsen argues a 'buy and hold' approach to pension pots is no longer viable. He says a more active strategy is vital to preserve wealth over time...

It may not have felt like it at the time, but the past nine years have been a golden era for investors. Bond and equity markets have risen steadily and people have been handsomely rewarded for taking risk. The problem is that people can be seduced into assuming that the future will be like the past. This is not just an assumption made by novice investors; it is endemic in the way portfolios are constructed. In a world where the future looks exactly the same as the past, it is possible to simply set an asset allocation and, with only occasional rebalancing, ignore it for twenty or thir...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Women in their 50s facing 'pensions crunch'

Women in their 50s facing 'pensions crunch'

Woman aged between 50 and 59 projected to retire on £12,600 a year

Martin Richmond
clock 11 November 2026 • 3 min read
Women's retirement income outlook improves but 'faster' change needed

Women's retirement income outlook improves but 'faster' change needed

Most women still on track for minimum retirement standard or worse

Alex Levy
clock 10 November 2026 • 3 min read
Why the pensions dashboard could raise more questions than it answers

Why the pensions dashboard could raise more questions than it answers

The 31 October connection deadline was a 'starting gun rather than the finish line'

Robert Holford
clock 09 November 2026 • 4 min read