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...

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