Guy Stephens: The realities of pension drawdown investing

'A buffer replenishment strategy'

clock • 3 min read

When 10-year benchmark gilt yields are below 1% it is time to rethink your pension strategy, writes Guy Stephens. With that in mind, however, he asks what the options are for effective drawdown investing ...

One of the biggest conundrums facing an aspiring retiree when approaching pension drawdown and retirement is how to invest their investment pot so that it lasts as long as they do. Historically, conventional thinking was that, in the five years prior to retirement, you adjusted the asset allocation gradually away from growth investments that had been appropriate during the so-called ‘accumulation phase', such as equities, towards non-equity investments which would provide a secure and growing income stream in retirement, often using annuities.  This was fine when interest rates were 5...

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 DFM & Model Portfolios

Fairstone converts four portfolios into funds as MPS momentum builds

Fairstone converts four portfolios into funds as MPS momentum builds

Move will cut client charges by up to 20%

Jenna Brown
clock 21 May 2026 • 2 min read
Isio looks to add private assets to MPS

Isio looks to add private assets to MPS

Head of distribution cites ‘growing’ demand among advisers

Sophia Panayi
clock 18 May 2026 • 3 min read
Isio acquires Collidr in bid to become 'leading force' in MPS market

Isio acquires Collidr in bid to become 'leading force' in MPS market

Deal is subject to FCA approval

Jenna Brown
clock 06 May 2026 • 2 min read