Partner Insight: Navigating the Retirement Risk Zone

Smoothed returns can play a crucial role in the approach to retirement, says Samantha Pardoe, senior investment development manager at Standard Life.

Sarka Halas
clock • 3 min read
Samantha Pardoe, senior investment development manager at Standard Life
Image:

Samantha Pardoe, senior investment development manager at Standard Life

Retirement is a pivotal life stage, but the period leading up to it is often marked by what's known as the Retirement Risk Zone. This period typically spans five to ten years before retirement and brings about a shift in mindset. As individuals approach the end of their income accumulation phase, their focus shifts from maximising market gains to preserving their savings. 

"You've finished with accumulation, you get to the point where you're probably not going to buy an annuity with the whole fund value anymore and a lot of clients aren't doing that because they want that flexibility, so that money is going to stay invested," explains Pardoe. "But you do need to start doing something to preserve that pot that you spent a number of decades building. That's a perfect spot for smooth funds," says Samantha Pardoe, senior investment development manager, Standard Life.  

Standard Life's Smoothed Return Pension Fund is a strategy designed to smooth out market movements and give investors greater peace of mind. Though she warns a Smoothed Fund won't nullify major market drop offs, she explains how this strategy can play a helpful role in the day-to-day ups and downs of markets that may concern investors.  

In decumulation, investors are still concerned about volatility but with the added concern of extracting income as well to cover day-to-day expenses. Fortunately, the flexibility of smoothed funds can offer more than one route to income for those in retirement. With a smoothed fund, investors in retirement can either rely solely on the strategy for decumulated income or use this as part of a bucket strategy. In the latter, another source of income such as an annuity or cash provides the regular income while a smoothed fund acts as a second "bucket." 

"We're taking some of the risk off the table for clients and giving them something that is a much more stable journey for them that helps them to sleep at night," says Pardoe of retired investors using the Standard Life Smoothed Return Pension Fund. "But we're still giving them that flexibility that they want and that's really key for a lot of clients at the moment."

Brought to you by Professional Adviser in association with Standard Life. By clicking "Read Here" you agree to the data protection statement below.

Read Here

DATA PROTECTION STATEMENT

Your privacy policy – please read carefully:

We set out below how and the basis under which we, Incisive Media*, will communicate with you.  In our Privacy Policy we explain how we may use your data.

For subscriptions, events, sponsored content and resources, we will use the lawful basis of 'legitimate interests' and we will use the contact details supplied to us to market to you regarding your trial or subscription, reader research, events and other related products. You will always be offered the option to change your contact preferences. Where you request a whitepaper or content published by one of our third party partners or attend a sponsored event which Incisive Media hosts, we will identify the third party or sponsors to you at the time and then pass on your contact details to them. They will contact you directly and their use of your data will be governed by their own privacy policy. Events may attract additional sponsors after bookings have opened and after the date you have signed up to attend, but we will identify all sponsors to you by email before the event.

More on Investment

Understanding the investment appeal of the energy addition

Understanding the investment appeal of the energy addition

Positive change takes time

Tim Humphreys
clock 11 March 2026 • 4 min read
Chaos is not a ladder: Navigating human behaviour at times of market stress

Chaos is not a ladder: Navigating human behaviour at times of market stress

'It is important to maintain perspective'

Sacha Chorley
clock 09 March 2026 • 4 min read
Four reasons why direct engagement can still make a difference

Four reasons why direct engagement can still make a difference

'Quantitative data arguably tells only half the story'

Simon Wood
clock 05 March 2026 • 4 min read

In-depth

What does the Schroders/Nuveen deal mean for Benchmark advisers?

What does the Schroders/Nuveen deal mean for Benchmark advisers?

ARs await deal impact amid future sale suggestions

Isabel Baxter
clock 26 February 2026 • 5 min read
The adviser firms private equity wants in 2026

The adviser firms private equity wants in 2026

'People-led durability is now the premium asset in 2026'

Laura Miller
clock 16 February 2026 • 7 min read
Onshore bonds are back – but who is leading the call for their return?

Onshore bonds are back – but who is leading the call for their return?

'Innovation, as ever in financial services, starts by looking in the rear-view mirror'

clock 11 February 2026 • 5 min read