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For nearly two decades, Davenport Thomas’s highly experienced team has worked closely with numerous accountancy practices to support their clients with a wide range of financial planning needs.

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Are your ducks in a row?

31st Jan 2024
Brought to you by
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For nearly two decades, Davenport Thomas’s highly experienced team has worked closely with numerous accountancy practices to support their clients with a wide range of financial planning needs.

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As the golden years approach, the importance of having a well-thought-out retirement strategy cannot be overstated. Whether you are just a few years away or several decades from retirement, careful planning is crucial to ensure financial stability and peace of mind during your post-working years.

 

 pension retirement strategy | Davenport Thomas | UK Money Jar on a white shelf in a household living room. Saving for Pension Concept
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Close to retirement

For those on the cusp of retirement in the next few years, a prudent approach involves developing a smooth, non-volatile investment profile which minimises risk for the first five to ten years of retirement and then to invest the remainder in more volatile funds which have the potential to grow over the longer term. This approach shields your nest egg from the unpredictable nature of market volatility, as witnessed during events like the pandemic or financial crashes. By maintaining a stable portfolio for the initial years of retirement, you minimize the risk, thus safeguarding your financial well-being.

 

Decades to go

Conversely, younger individuals can afford to take a more aggressive stance. Investing in a more risky areas carries the potential for higher returns over the long term. While this strategy may expose investors to short-term market fluctuations, the extended timeline offers ample opportunity to recover from any downturns.

 

The ‘inbetweeners’

For those falling in between these two extremes, a balanced and risk-managed approach is advisable. The strategy here is for a balanced mix of stable and more volatile investments, aligning to your risk tolerance and financial goals. Diversifying your portfolio across various asset classes helps mitigate risk while providing the potential for growth.

 

Regular rebalancing is important

Regular portfolio rebalancing is a critical aspect of maintaining a healthy and effective retirement strategy. Over time, market fluctuations and varying performances among different asset classes can cause your carefully crafted portfolio to drift from its original allocation. Without intervention, this can lead to an unintended concentration in certain assets, exposing you to higher levels of risk than initially intended. We are able to review and adjust portfolios 365 days a year. Regular rebalancing is the compass that keeps your retirement strategy on course, adapting to changing market conditions and helping you stay on track toward a secure and prosperous retirement.

 

At Davenport Thomas we have been helping clients craft retirement strategies for over 18 years. So, for a discussion about how we can help you and your clients, you can book directly into Richard’s diary here, email us or call us.

[email protected]

Contact number – 0208 6182077

https://calendly.com/richard-dtapp

 

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The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. A pension is a long-term investment not normally accessible until 55 (57 from April 2028).