Nick Johal: Protecting from pound cost ravaging

'A -20% return has serious consequences'

clock • 3 min read

Pension freedoms and the growing demand for drawdown offers an exciting opportunity for financial advisers, writes Nick Johal, but having investment portfolios that can combat pound cost ravaging are vital

Since April 2015, the financial services industry has introduced a wide variety of new products and services to meet the challenge of pension freedoms. Though, in reality, it is the multi-asset funds that have hoovered up most of the available investment. Throughout this process, however, the need for products with defined returns - particularly for investors in the early period of decumulation when their longevity risk is highest - has been overlooked. In the early phase of a long drawdown period, investors are in many ways exposed to the greatest risks. In contrast to an accumulation i...

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