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

Do clients already own the best retirement portfolio?

Do clients already own the best retirement portfolio?

'Feeling safer and being safer aren't the same thing'

Alex Funk
clock 29 October 2026 • 4 min read
Budget 26: Government to get rid of two-year tax rule on lump sum death benefits

Budget 26: Government to get rid of two-year tax rule on lump sum death benefits

Changes will also be made to how tax due on excess lump sum death benefits is collected

Jonathan Stapleton
clock 28 October 2026 • 1 min read
Budget 26: State pensioners to be shielded from income tax

Budget 26: State pensioners to be shielded from income tax

State pension expected to rise to £13,036

Sophia Panayi
clock 28 October 2026 • 2 min read