Retired

Our case studies are designed to illustrate how a portfolio could be constructed according to a level of risk and how this may change as goals are approached.  The different case studies are based on a typical wealth cycle for pension planning using different stages of life. 

The case study focusses on an investor's ability to take risk  and does not make any assumptions about the level of risk that someone is willing to take, as individual's willingness to take risk is unique and subjective.

In addition, it is important to remember that your individual circumstances may affect your risk profile and your financial adviser will help you to assess this. The purpose of this section of the website is to provide an example illustration based on the following assumptions.

Wealth & Earnings: Diminishing or stable assets.  Low levels or no employment income

Investment Time Frame: Unknown

Income Requirements: 2-5% of the portfolio value per annum 

Typical goals: Financial security and income

In this illustration we have assumed that someone who is retired has decided to take income from their pension portfolio, rather than buy an annuity, which provides a fixed level of income in exchange for the assets.

At this stage it is more likely that someone in this position may wish to preserve the value of their assets in order to protect their future income. In addition, withdrawing income makes it more difficult to recover asset values following market falls, which means that risk should be reduced to limit any losses.

Past performance is no guarantee of future performance. The value of investments and the income derived from them can fall as well as rise and investors may get back less than they invested.