Lorna Blyth: Why the drawdown market has to evolve

Decumulation a separate issue

clock • 3 min read

Their distinct risks and objectives mean investing for drawdown is entirely different from investing for accumulation and so, argues Lorna Blyth, it is wishful thinking to assume one solution should be used for both

I was both surprised and dismayed to read a recent quote from research conducted  by the lang cat and CWC Research, which showed nearly two-thirds (60%) of the firms they surveyed did not have a separate investment proposition for drawdown. The reality is that investing for drawdown is quite different from investing for accumulation because there are different objectives to deliver against and different risks to manage - and it is wishful thinking to assume one solution should be used for both. Sequencing risk is a key risk for at-retirement planning and can have a huge impact on the ...

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 Retirement

Partner Insight: The psychology of retirement

Partner Insight: The psychology of retirement

Bridging the advisers-clients gap: How emotional intelligence can help build deeper trust with clients and better understand their financial goals

James Woodfall, Raise Your El.
clock 15 September 2025 • 1 min read
Managing drawdown risk: A new frontier in retirement planning

Managing drawdown risk: A new frontier in retirement planning

'Volatility alone is no longer a sufficient risk measure'

Matthew Wright
clock 29 August 2025 • 4 min read
Sounding the alarm: Facing the retirement reality check

Sounding the alarm: Facing the retirement reality check

'At the heart of the issue is a worrying lack of engagement'

Laith Khalaf
clock 17 June 2025 • 3 min read