Managing Investment Risk in Retirement
The following article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy, sell or hold any investment, or to adopt a particular investment strategy.
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The need to manage investment risks in retirement is more acute now than ever before. Recent stock market volatility and upside inflation risks from tariffs are once again focusing minds on the phenomenon known as sequencing risk.
Large withdrawals from a pension pot when fund values are depressed can significantly reduce the sustainability of income.
In the UK, flexible drawdown was introduced with pensions freedoms in 2015, and the extended 2022 bear market in both global stocks and bonds was its first real test. Meanwhile, today’s higher bond yields mean annuities are a more competitive investment solution than they used to be, albeit with significantly less flexibility.
Trevor Greetham, Head of Multi Asset, analyses the importance of managing downside risk over the recessions and bear markets the average person is likely to encounter in retirement.
For professional investors only. This material is not suitable for a retail audience. Capital at risk. This is a financial promotion and is not investment advice. Past performance is not a guide to future performance. The value of investments and any income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested. Portfolio characteristics and holdings are subject to change without notice. The views expressed are those of the author at the date of publication unless otherwise indicated, which are subject to change, and is not investment advice.
At Ethical Offshore Investments, we provide ongoing guidance to our clients to ensure that their current & future financial goals and objectives are met. We specialise in cost effective solutions to ensure more of the investment returns stay in your pocket…… This could be the difference between retirement and a comfortable retirement.
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