Retiring into a market downturn can be daunting. If you begin to draw down your pension portfolio to pay for your everyday expenses just when the value of your investments is falling, then it’s going to limit your potential capital growth once markets do eventually recover.

That can reduce the number of years your pension pot can sustain you.

So, what can you do to counter this possibility? Aside from delaying your retirement by a year or two, cutting your overheads or seeking alternative sources of income, you can alter the amount of income you withdraw each year.

In the accompanying video, financial planner Zoe Dagless runs through a variety of different spending scenarios. She also shows how you can build some flexibility into the way you draw down your pension to help it last longer.

For additional content designed to help you though these challenging times, including a deeper dive into building flexibility into your pension withdrawals, visit our downturn Knowledge hub.

Investment risk information

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested.

Important information

This article is designed for use by, and is directed only at, persons resident in the UK.

The information contained in this article is not to be regarded as an offer to buy or sell or the solicitation of any offer to buy or sell securities in any jurisdiction where such an offer or solicitation is against the law, or to anyone to whom it is unlawful to make such an offer or solicitation, or if the person making the offer or solicitation is not qualified to do so.

The information in this article does not constitute legal, tax, or investment advice. You must not, therefore, rely on the content of this article when making any investment decisions.

Issued by Vanguard Asset Management Limited, which is authorised and regulated in the UK by the Financial Conduct Authority.

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