Retirees are not taking action on their concerns about the impact of market volatility on their retirement income sustainability, according to new research from Aegon.
Its survey found that 67 per cent of retirees were leaving their savings as and where they were, despite 43 per cent of those surveyed being worried about the current market conditions.
After a strong performance in recent years, the global stock markets have fallen over the past few weeks, which has forced some retirees to assess whether the drawdown income they are taking is sustainable.
Aegon investment director, Nick Dixon commented: “It is positive to see that overall retirees aren’t phased by current market conditions, but this shouldn’t turn into complacency.
“Retired investors would be wise to reassess their pensions, with the help of a financial adviser, to consider the amount of money they are taking out of their pension pot and ensure their investments are diversified enough.”
However, just 11 per cent of those surveyed said that they were reassessing their current investment strategies in order to diversify.
The research also discovered that over half (52 per cent) of retirees haven’t decreased their rate of drawdown withdrawal as a result of the current market conditions.
Furthermore, 58 per cent said that they haven’t reduced their exposure to equities in the past year, despite “significant outflows from equities in recent times”.
Dixon added: “The current downturn in markets will undoubtedly test the nerves of retired investors.
“Current market instability comes after over a decade of strong gains and this coupled with the introduction of pension freedoms may put some retirees at risk of running out of money in later life at a time when their pension pot is at risk of falling in value.”