How to manage drawdown pensions during market volatility
By Cristian Angeloni, 3 Apr 20
Quilter gives five tips on how to limit coronavirus-induced damage for retirees
One of the best things that investors can do right now is stay put.
“The important thing is not to panic,” Greer said. “In the years since the crisis, investors have enjoyed bumper returns that have bolstered retirement pots.
“It means that despite the recent slump in capital markets, drawdown investors approach this from a position of strength.
“Doing nothing may seem counterintuitive but investors can be their own worst enemy in times of strife.
“There can be a temptation, when markets fall, to flee into cash but, while a portfolio may be worth less at today’s prices than it was just a few weeks ago, those losses aren’t locked-in until the assets are sold.
“If you stay invested, then there is an opportunity for them to recover.”
Tags: Covid-19 | Drawdown | Pension | Quilter | Volatility
