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Your accredited financial advisor can assist you with your investment choice.  For further information regarding appointing a financial advisor and preferential rates offered to UCTRF members, click here. 

You carry the risk that the investment returns earned on your retirement saving contributions will be sufficient to provide you with a reasonable income at retirement.

Members have different needs and requirements when it comes to investments and the risks they can accommodate. Each portfolio has its own unique Risk Profile and you choose the portfolio that is more suitable for you and with a Risk Profile (need and expectation) that closely matches yours.

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What are the risks I need to be aware of?

It is crucial that you understand what risks you are taking on and how best you can manage these risks.

In this regard you are exposed to three main risks, namely:


    

Risk of insufficient contributions

This refers to the risk that the UCTRF contributions that you set aside monthly as your Accumulated Retirement Savings are simply too low in relation to your CoE. Remember that the total contribution is reduced by the Premium and administration fee and only the balance is allocated to your Accumulated Retirement Savings. Your contribution rate is between 12% and 40% of your CoE – the choice of what percentage to allocate as your contribution rate is your own.

Clearly, if you set your contribution rate at the lowest level of 12% of your CoE, this will have a material impact on your Accumulated Retirement Savings.

The Board cannot do anything to manage this risk other than to warn you of the consequences of saving too little, and to encourage you to increase your contribution rate to the maximum possible.

As a general rule, the further you are from retirement, the more you are exposed to Inflation Risk, and the closer you are to retirement, the more you are exposed to Final Payment Risk.

How can I manage these risks? Find out more in the Investment Guide on the Member Guides page. 

Assessing your risk appetite

A key factor to consider when making your investment choice is your Risk Profile.

You need to understand that if you have a low appetite for risk you will probably need to contribute more for your retirement savings or you may end up with inadequate Retirement Benefits. For example, if your money earns 1% per year less because you have a low "appetite" for risk, your Retirement Benefit (taken over your working lifetime) can be some 20% lower.