Investment risk: The value of your savings is directly and inextricably linked to the performance of the investment funds that you choose. When the value of the investment funds goes up, your savings value goes up; when they go down, your savings value goes down.
Company risk: Whilst unlikely and infrequent, sometimes financial institutions collapse which can put your assets held with that financial institution at risk. By law in the Cayman Islands, customer assets must be kept separate from both company assets and other customers’ assets, by using segregated portfolios. This ensures that your pension plan assets are entirely separate and safe in the event of the holding company (Investors Trust) becoming insolvent or stopping trading for any reason. In the unlikely event of the holding company becoming insolvent, your assets are safe, but you may not be able to continue with your savings plan as originally agreed with the company, and instead have the choice of either transferring your accumulated savings plan assets (your shares in whatever investment funds you are invested into at the time) to another financial institution, or selling them and being paid the full current value by bank transfer to any account in your name. An event of this type would not result in you losing money, but it could affect your financial planning.
Not-sticking-to-the-plan risk: This savings plan is designed to be relied upon by Future You and is structured in a way to make sure you can rely on it for your future financial requirements. For example, it includes loyalty bonuses which are paid to you if you stick to your plan, and are not paid if you do not stick to your plan. It is very flexible and allows you to change and update your savings habits as you make your way through life, but is not designed to be as flexible as a bank account and should not be treated as such. If you use this savings plan for any other purpose than it is intended for, there is a risk that you will not receive the full benefits of it which may affect your financial situation later in life.