Beyond sequencing risk: Dynamic withdrawals for retirement

Volatility is seen as one of the biggest threats to a client’s income, particularly as the post-pension-freedom landscape has shifted responsibility firmly onto individuals and advisers to manage drawdown decisions, income sustainability and longevity risk with greater precision. Yet the impact of market falls occurring at the start of retirement, when portfolios are also funding income withdrawals, is a risk that many advisers can overlook. Losses at this stage can force clients to sell assets at depressed values, reducing the capital available to participate in any subsequent market recovery....