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Take income from dividends and other assets This is a difficult decision and individuals need to decide whether they are willing to forego some income today in exchange for greater income security in the future.”Ĥ. “To mitigate the risk of ruin, they could keep their withdrawal rate fixed at 4% to preserve the longevity of their pot, although this would see the income from their pension drop to £3,000 a year. If their pot has fallen in value to £75,000 then £4,000 represents a withdrawal rate of around 5.3% a year, which may not sound a lot but creates considerable uncertainty about how long their pot will last. For instance, someone with a £100,000 pot might have set-up withdrawals of around 4%, or £4,000 per annum. “Those with smaller pots will need to think carefully about how best to protect the longevity of their retirement savings. If you stay invested then there is an opportunity for them to recover.” 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. “Doing nothing may seem counterintuitive but investors can be their own worst enemy in times of strife. It means that despite the recent slump in capital markets, drawdown investors approach this from a position of strength. In the years since the crisis investors have enjoyed bumper returns that have bolstered retirement pots. Jon offers five tips for drawdown investors making decisions which could shape their standard of living and financial wellbeing during retirement: Nobody can predict for sure how long your pension pot will last but utilising financial advice can allow you assess your pension income plans and take action if necessary.” “There are plenty of options for protecting the longevity of your pension pot and some people will exercise a combination of these in order to stabilise their retirement income plan.