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

Tatton MPS solutions dominate as most popular in Q1

Tatton MPS solutions dominate as most popular in Q1

Three Tatton MPS solutions land in Defaqto’s top ten

Isabel Baxter
clock 15 April 2024 • 2 min read
Söderberg & Partners unveils trio of MPS ranges for advisers

Söderberg & Partners unveils trio of MPS ranges for advisers

Portfolios will be available on the Nordic firm’s own adviser platform

Isabel Baxter
clock 03 April 2024 • 1 min read
Is MPS the future of the investment proposition? We asked you…

Is MPS the future of the investment proposition? We asked you…

Advisers, business owners and paraplanners share their thoughts

Isabel Baxter
clock 02 April 2024 • 2 min read