Seven years is the 'magic number' for decumulation strategy

The firms' Retirement Income whitepaper released today (23 April) noted that if withdrawals are needed prior to seven years, an alternative investment strategy to the accumulation strategy is required. "A common misconception in this approach is that shorter-term requirements should lead to lower risk investments," the report stated. It advised that assets being held to meet shorter-term income requirements should match as closely as possible to the duration time of the liability income as and when they arise. According to the report, a client's decumulation phase of their lifetime...