In the days of compulsory annuity purchase and shorter life expectancy, it made sense to 'de-risk' in later life but with two-thirds of people now opting for drawdown, writes Matthew Yeates, the dynamic has changed considerably
For years now, financial advisers have recommended that their clients reduce investment risk within their portfolios as they approach retirement. The Retirement Outcomes Review, the final report on which was published by the Financial Conduct Authority (FCA) last June, is however the clearest sign yet the times are changing. It made sense to ‘de-risk' in later life when most of us opted for annuities and when life expectancy in retirement was modest. According to the FCA, however, two thirds of us now opt for drawdown and that changes the dynamic considerably. One of the first to ques...
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