Platforms & Pensions
The world of retirement has changed dramatically over the last few years , but the advice around it hasn ’ t kept pace
lives . Even with rising interest rates , dizzying inflation is at work , so your cash pile will haemorrhage value . Or you could buy an annuity . With higher interest rates , annuity yields have risen significantly , and they are not to be written off as an option just yet . If you expect to live to 120 , then an annuity is the choice for you . Which leaves us with drawdown . It still frustrates me that the people who have helped you accrue your pension don ’ t offer a better system to help you draw it down again at a sustainable level . Without a financial adviser , drawdown tends to be a DIY exercise , which is why you need to plan your cashflow carefully . Bear in mind that your pension pot should be at its largest at the point you retire , so teasing out extra growth at this point should result in significant monetary gains . It is also important to note that , in volatile markets , it can also see significant losses . If you have a lot of money in your pension , then capital preservation is a good strategy and a well thoughtout lower-risk portfolio is for you . What concerns me – and many others like me – is that I don ’ t think I will have a large pension at retirement . But what I will have is a
Issue 91 - January 2023 / 69 /