Retirement savings performance 'not reviewed'

Fidelity International has warned that Britons saving for retirement are not adequately reviewing the performance of their investments or their asset allocation.

The company found that a fifth of people never review either the asset allocation or performance of their investments, with a third examining their savings' performance once a year or less.

Furthermore, the research found that 35 per cent of investors felt uncertain on how their asset allocation should be properly divided, with the company claiming that young people are too cautious in their investments and elder savers are taking too much risk.

Simon Fraser, president of institutional business at Fidelity International, said: "The importance of asset allocation cannot be underestimated. Your investment mix should never become static and needs to be adjusted to market fluctuations and changes in your life, including age.

"Those investors who began with 100 per cent invested in shared or share based funds will soon lose their initial advantage by failing to review their asset allocation over a lifetime."

Mr Fraser advocated better advice and education for savers throughout their lifetime.

Recent years have seen the introduction of online asset allocation tools which are used by some independent financial advisers to assist in providing capable asset management.

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