Sequencing Risk - Why The Timing of Stock Market Crashes Can Have A Big Impact On Your Retirement

Описание: In this video, I explain what sequencing risk is and why it poses a significant threat to your retirement income if not properly understood. Sequencing risk – also known as sequence of returns risk – occurs when the order of investment returns negatively impacts how long your retirement portfolio lasts. Even if average returns over time are reasonable, poor returns early in retirement can have a lasting effect on your pension pot if you're drawing income during that period.

This risk becomes particularly relevant as you transition from the accumulation phase of saving for retirement into the decumulation phase of drawing an income. I walk through how market volatility combined with withdrawals can significantly erode your capital, especially during the early years of retirement, and why two retirees with the same average return can experience dramatically different outcomes based solely on timing.

Understanding sequencing risk is key to building a more resilient retirement plan. Whether you're approaching retirement or are already drawing from your investments, this video will help you recognise one of the less understood, yet impactful, risks to your long-term financial security.

If you're planning your retirement and want to stay ahead of potential risks, make sure to watch through to the end. Don’t forget to check out the other videos on the Neligan Financial YouTube channel here:    / @neliganfinancial  

Have you considered how sequencing risk might affect your own retirement income? Let me know in the comments below.

For more information about how I help my clients plan their retirement visit www.neliganfinancial.co.uk

The contents of this video do not constitute advice. Neligan Financial is authorised and regulated by the Financial Conduct Authority.

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