The Investment Challenges of a Decumulation World
The 2014 UK pension reforms presented UK pension savers with significantly greater freedom than previously. The reforms have major implications for DC scheme investment strategies — in particular for the lifestyle strategies adopted, and for individuals’ investment choices regarding the post retirement period. In this paper, we examine some of these challenges. To do this, we model different investment strategies using historical financial and economic data, to determine the impact on member outcomes and the certainty of achieving these.