Drawdown Strategies - Part 3 Pension Drawdown


Pension Drawdown -  Starting drawdown poses some of the most difficult decisions a retiree must take:-

  • How long a retirement should I plan for? 
  • How much income can I withdraw?  
  • What is the minimum income that I can accept even during poor markets?
  • Should a fixed inflation linked income be the target or a flexible drawdown strategy used to both protect the portfolio and to allow a higher income when the portfolio balance exceeds expectation?
  • Is leaving a significant portfolio balance on death an objective or do I need to withdraw the maximum feasible during retirement?
  • Do I periodically balance the  portfolio maintaining the bond/equity ratio and risk profile or adopt one of the variable bond/equity ratio strategies designed to maximise the probability of the portfolio surviving retirement but vary the risk profile of the portfolio?
  • Which are the best simulation tools to predict a Safe Withdrawal Rate (SWR)?
  • How do I know that my portfolio is on track and at what point do I have act?
  • How do I know when I can take more income from my portfolio?


All these aspects of drawdown planning in a series of posts broken down as follows:-
  • 3.1 Drawdown Simulation Tools
  • 3.2 The Bengen 4% Rule - Does it still work? Where Doesn´t it
  • 3.3 Portfolio Balancing or withdrawing from bonds or equity based on a set of rules to maximise portfolio duration (Income Harvesting)
  • 3.4 Fixed or variable Drawdown?
  • 3.5 Tracking Portfolio performance
  • 3.6 Minimising the Longevity Risk
  • 3.7 Plan B for portfolio crises
  • 3.8 My Retirement Plan

Go to the first post in the series 3.1 Drawdown Simulation Tools.














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