Pensioners urged to take more risks at retirement

clock

As it is no longer compulsory for pensioners to buy an annuity, and with an increase in longevity, pensioners should take more risks with their investments, claims Jupiter.

It argues with life expectancy increasing, thousands of pensioners are investing on a time frame of more than 20 years with at least part of their retirement savings. Because of this, it suggests they do not need to put all of their money into low risk, low return assets, such as gilts and should, instead, consider investing in equity funds to provide capital growth and income. But Jupiter warns this strategy would require regular review in order to guard against capital erosion and to ensure minimum income requirements, so it suggests investors consider a “layer cake” approach to pensi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers turn to smoothed funds to help manage volatility threat

Advisers turn to smoothed funds to help manage volatility threat

Decreasing exposure to equities also a popular strategy

Isabel Baxter
clock 26 March 2024 • 1 min read
Examining the 60/40: Building diversified portfolios in 2023

Examining the 60/40: Building diversified portfolios in 2023

Advisers have a lot to consider when it comes to portfolio diversification

Charlotte Moore
clock 14 April 2023 • 6 min read
Schroder Investment Solutions expands distribution of MPS

Schroder Investment Solutions expands distribution of MPS

Expanding the range of DFM choice on the Parmenion platform

Ayesha Venkataraman
clock 06 December 2022 • 2 min read