Lawrence Cook: Beware decumulation's 'double whammy'

Factor in volatility

clock • 4 min read

Recent market turbulence must be a reminder to advisers to protect clients in the decumulation phase of their life against the combination of volatility and pound cost ravaging, writes Lawrence Cook

Concerns may have been creeping into the market for a little while but October will have left investors and their advisers in little doubt that market volatility must now play a prominent part in their thinking. In the three months to the end of October, the UK equity market - as measured by the FTSE All-Share index - shed 10%, while short-dated bonds and cash remained static. This may well have triggered many MiFID II requirements for advisers and discretionary fund managers to write to clients to inform them of this drop - particularly those with a higher risk profile. This recen...

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