When stock markets are falling you don’t want to be with a firm that is struggling to cope. Financial strength has become hugely important recently. The public collapse of a high profile firm in recent years has had a major impact on everyone’s views on how important it is. It’s important that it will still be around when your investment matures; and that it will be as healthy as you want your finances to be.

You need to be as sure as you can that the company can pay out what it promises, and isn’t using up money today that it should be keeping for the future. Ask about the financial strength of the company you intend to trust with your money, or if the company is being recommended by an adviser ask them to show you. Be aware that the financial strength of a company can change over time.