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

Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Govt reportedly considering introducing a £2,000 salary sacrifice annual cap

Joseph Warne
clock 14 November 2025 • 4 min read
Reeves looking to cap salary sacrifice contributions to £2,000 - reports

Reeves looking to cap salary sacrifice contributions to £2,000 - reports

Chancellor has 'decided against' cutting pension lump-sum withdrawals

Jonathan Stapleton
clock 10 November 2025 • 4 min read
MPs warned against changes to salary sacrifice pensions

MPs warned against changes to salary sacrifice pensions

SPP says scrapping salary sacrifice would lead to reduction in employees’ take home pay

Martin Richmond
clock 07 November 2025 • 4 min read