More than half of retirees have not decreased their rate of drawdown as a result of global market volatility, Aegon research shows.
FCA data showed in September 2018 that those taking regular sums from drawdown (or uncrystallised funds pension lump sum) policies have increased their rate of withdrawal from 4.7 per cent in 2016-17 to 5.8 per cent in 2017-18.
The survey by the Aegon UK consumer panel asked 650 adults of retirement age about markets in November 2018. When asked whether they have reduced their exposure to equities in the past 12 months, 58 per cent said they have not.
Meanwhile, 43 per cent of surveyed retirees said they are concerned about the impact current market conditions could have on their retirement income sustainability, while 67 our cent are not planning to take any action and leaving their money where it is.
Just one in ten retirees (11 per cent) are reassessing their current investment strategies in order to diversify.
Aegon investment director Nick Dixon says the current downturn will undoubtedly test the nerves of retired investors: “It is positive to see that overall retirees aren’t phased by current market conditions, but this shouldn’t turn into complacency.
“Retired investors would be wise to reassess their pensions, with the help of a financial adviser, to consider the amount of money they are taking out of their pension pot and ensure their investments are diversified enough.”