A third of Brits plan to stay invested in retirement

15th September 2014

Around a third of UK adults are planning to use the stockmarket to help them outstrip inflation and manage the rising cost of living in retirement.

New research from retirement income specialist MGM Advantage, found that more than half of UK adults, at 53% rate the rising cost of living as their number one fear for retirement – above even losing a spouse or partner, at 32%. As result almost a third, at 32%, of pre-retirees now say they would retain some exposure to stocks and shares to offset the negative effects of inflation on their retirement income.

Andrew Tully, pensions technical director at MGM Advantage said: ‘Everyone’s feeling the pinch and the cost of living crisis continues to affect household budgets. It’s not surprising that people are thinking about how to ensure they have more money to live on in retirement and are considering retaining some exposure to equities.

‘To maintain equity exposure in retirement while generating an income usually means using income drawdown. But, the risks associated with drawdown mean it is not for everyone, so we should exercise caution shoehorning everyone into that type of plan. For drawdown to provide sustainable income through retirement requires a high degree of exposure to equities, and therefore more risk

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