Reviewing your investments

Getting your money ready for your retirement.

As you approach retirement, you may want to review how your money is invested to make sure it’s in the right place to suit the decisions you may take at retirement.

If you have been managing your own investment strategy on a ‘Pick & Mix’ basis, you may want to review the amount of risk you are taking to avoid any unwelcome surprises. For example, if you are planning to take an annuity, the money might be in assets (such as government bonds) that move in line with the cost of annuities. If you are planning to use income drawdown, you may want to keep the funds growing at an appropriate level of risk.

Most FuturePlanner members use the Default strategy and your investments will have been moving gradually off risk. In the last three years leading up to your target retirement age, the money will move to a platform for the different choices, recognising that you could:

  • take tax-free cash (25% in capital-preserving assets), and/or
  • buy an annuity (37.5% in assets expected to move broadly in line with annuity prices), and/or
  • take income drawdown (37.5% in a diversified mixture of assets expected to provide some growth with low volatility).

Checking your target retirement age

When you joined FuturePlanner, you will have been asked to name a target retirement age, which can be any age from 55. This age is important for those using the Default strategy because it sets the dates when the gradual de-risking takes place. If it turns out that you are unlikely to retire at the target age you chose, it’s important that you contact the administrator so that they can adjust the investments appropriately.