Investing the appropriate amount in order to maintain your standard of living in retirement is essential, however, many over 50s are unwilling to invest the necessary amounts in order to do this. 

The misalignment of expectations in terms of the level of risk that is aligned with particular investment outcomes is common. Over 50s in particular have difficulty with this concept in particular according to new research from The London Institute of Banking and Finance (LIBF) and Seven Investment Management (7IM). 

Of those surveyed, 91% wanted to maintain their current lifestyle in retirement in retirement, but just over three quarters of those surveyed considered themselves "balanced" or "cautious" investors, and were therefore relatively risk averse. 

36% indicated that they would place themselves between wealth preservation and wealth creation and 42% say they try to minimise investment losses.

Only 16% considered themselves as "fairly adventurous" and 6% were willing to maximise potential returns.

Having too cautious a stance in your investments could result in the final amount you receive being smaller than absolutely necessary. Some advisers advocate a focus on income producing assets close to retirement in order to negate the possibility of low returns affecting client's pension pots rather than totally de-risking. Alternatively, does the increased life expectancy necessitate actually not lowering risk before retirement as much as was previously accepted?

Your Financial Adviser can construct a financial plan for you that will enable you to meet your financial goals and that is appropriate for your risk appetite.

The value of investments and income from them may go down as well as up and you may not get back the original amount invested.

A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.