How advisers are tackling sequence of return risk

"In my experience sequence of return risk is routinely overlooked, and has increased significantly with the demise of annuities as the preferred retirement income option," Richard Ross at Norwich-based advice firm Chadwicks said. The risk, simply put, is this: if a high proportion of negative market returns occur in the beginning years of retirement, it will have a lasting negative effect and reduce the amount of income clients can withdraw over their lifetime. While this phenomenon is not new, some advisers are becoming concerned that cashflow modelling, the seemingly must-use tool f...