This fear for retirement comes above keeping fit & healthy (45%) or even losing a spouse or partner (32%).
Andrew Tully, Pensions Technical Director at MGM Advantage, said:
‘’Everyone’s feeling the pinch and the cost of living crisis continues to affect household budgets. It’s not surprising that people are thinking about how to ensure they have more money to live on in retirement and are considering retaining some exposure to equities.
To maintain equity exposure in retirement while generating an income usually means using income draw-down. But, the risks associated with draw-down mean it is not for everyone, so we should exercise caution shoehorning everyone into that type of plan. For draw-down to provide sustainable income through retirement requires a high degree of exposure to equities, and therefore more risk.
Clients want protection against the risks associated with outliving their savings while managing the effects of inflation. This is where products like investment-linked annuities can help, allowing people to remain invested in equities so that there is potential to deliver more income over retirement than draw-down, while reducing the risk of depleting funds.’’
Sources: www.mgmadvantage.co.uk (2014/09/14)
