Investment Watch: Matt Morris's verdicts on recent developments

Wrong Turn The widespread assumption a 4% rate of withdrawal in pension drawdown is out of date and could result in up to 20% of people running out of cash during their retirement. This is the conclusion of research from Aegon and EValue, which found that increases in life expectancy and slower rates of economic growth mean the 4% ‘rule of thumb' used by many advisers and DIY pensioners is too aggressive for most people's portfolios to last the distance. The firms recommend clients should typically consider a sliding scale for drawdown somewhere between 1.7% and 3.6%, depending on their c...