Financial Conduct Authority  

What to know about investment risk in the early years of retirement

  • Learn about the relationship between risk and retirement and how that has changed with pension freedoms.
  • Understand why retirees tend to be risk averse and how this can be overcome.
  • Grasp what the FCA concluded about risk and how advisers can incorporate this into the advice process.
CPD
Approx.30min

By

Matthew Yeates is an investment manager at Seven Investment Management

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CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. People tend to be what, as they near retirement age, the author claims?

  2. According to the author's own research of two investors, the one with a moderately cautious portfolio generating 4 per cent per annum runs out of money at what age?

  3. Investors looking at the size of their pension pot overestimate by about what percentage how much income it will generate, or how long it will last?

  4. Is this statement about the FCA's Retirement Outcomes Review true or false? The FCA report draws the conclusion that someone who wants to draw down their pot over a 20 year period could increase their expected annual income by 47 per cent by investing in a mix of assets rather than just cash.

  5. What does the author recommend an adviser does in their advice process to deal with a client who is too cautious?

  6. Investors would be better off leaving more of their portfolios in what asset class at and into retirement?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Learn about the relationship between risk and retirement and how that has changed with pension freedoms.
  • Understand why retirees tend to be risk averse and how this can be overcome.
  • Grasp what the FCA concluded about risk and how advisers can incorporate this into the advice process.

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