- Start looking at your options about five years before retiring
- Pick your retirement strategy based on your needs
- Drawdown and annuities call for different derisking strategies
One reader recently expressed how strange he found the idea of starting to spend his savings, having worked all his life to accumulate them. “I’m trying to come to terms with it… in spite of my Yorkshireman’s tendency,” he told me. Many share the feeling – the financial transition from work to retirement can feel disconcerting.
Rob Morgan, chief investment analyst at Charles Stanley, says that investing your pension can be a bit like mountaineering. “Going down is more dangerous than going up,” he notes. “It may take less time and feel like the hard part is done, but the descent is often when you find out whether your planning worked out. It’s when fatigue can take its toll and supplies can run dry.” And as with many things, it pays to be prepared, and well in advance.