Why de-risking your pension could force you back to work
Jul 8, 2019 20:22:23 GMT 7
GavinK likes this
Post by Fletchsmile on Jul 8, 2019 20:22:23 GMT 7
Personally my investment portfolio for retirement has long assumed equity exposures, but a few thoughts in the article anyway..
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Why de-risking your pension could force you back to work post-retirement
Securities Trust of Scotland’s Mark Whitehead says lengthening lifespans mean savers cannot just switch into bonds after they retire.
Post By Eve Maddock-Jones
By Eve Maddock-Jones,
Reporter, FE Trustnet
Most investors will not have enough money saved to fund their retirement as they are stuck in the “old fashioned” cycle of de-risking into bonds when they stop working, which will not provide enough income to fund ever-lengthening lifespans.
This is according to Securities Trust of Scotland’s Mark Whitehead (pictured) , who says this failure to adapt has led to the emergence of the ‘grey zone’ where people will have to continue working after their official retirement date.
“We need income in retirement,” he explained. “The first stage of preparing for this is your savings lifecycle.
“We’re all saving for our pension funds and that’s the growth stage, where you need to make sure that you maximise the growth potential of your assets. Then, when you come to retirement age, you know that you have to have a large savings pot, and the larger the better because you can draw income from that and use that for your retirement.”
