Retirement planning is simple. But that doesn’t mean it’s easy.

A trendy investment today may turn out to be less wise when it’s time for you to retire. But how do you keep asset management smart and straightforward?

In the drive for profit, companies that offer retirement solutions to organisations – or directly to consumers – have made things unnecessarily complicated and costly. So says Scott Field, Chief Financial Officer for FedGroup, the insurance industry’s independent player.

‘Planning for retirement is, in fact, extremely simple. Entrust your savings to someone who practices consistent asset management, which lowers your risk and cost. Then make sure they’re utterly transparent about where your money is and how it’s doing.’

Warns Field: ‘Don’t be misled by promises of greater returns or choice. Too often this means contributing to management fees, rather than your retirement pay-out.’

In fact, choice can be illusory. When individuals – rather than their advisors – make investment decisions, the results are usually less than stellar.

‘People are emotional,’ continues Field. ‘The excitement of a buoyant market leads them to buy at the top of the cycle. That’s not profitable.’

Even skilled individuals seldom do better than average. And, if they do, active asset management costs more in fees – so the benefits still don’t add up. Surprisingly, the majority of those opting for ‘choice’ end up settling for the default portfolio, anyway. Higher premiums. Zero advantage.

In Field’s view, consistent asset management is preferable to active asset management.

‘Consistency still achieves at least the market average over time, without the burden of fees and trading costs.’

The most important decision a retirement fund manager can make is the right asset mix upfront. Field is clear here, too: ‘There’s no advantage for your client in extravagant strategies.’

The option of life-staging, which emphasises having more money in cash investments than equities as you approach retirement, in order to avoid the risk of a disruptive economic event, also holds more downside than upside.

‘Economic cycles are very difficult to predict,’ Field says. ‘So, there are no guarantees that moving from equities into cash at any particular time prior to your retirement will protect your savings.’

People are also living longer and retiring later. You may not want to draw a retirement income for five or ten years beyond the date initially chosen to move you to a higher weighting of cash and bonds. Or, you may want to retain a higher exposure to equities and property to generate both income and capital growth during your retirement.

It really is simple: when it comes to retirement saving, choose less choice.