Even in the “financial Armageddon” scenario that the firm ran, which mimicked a saver who started investing in a pre-2008 crash scenario and pulled out during a market slump as seen in early 2016, both portfolios ran out at 81.
The volatility of the high risk fund was unsurprisingly higher but the firm added that the benefit of higher expected returns would likely help ease the burden somewhat.
Justin Urquhart Stewart, co-founder and head of corporate development, said adding more risk closer to retirement “won’t be right for everyone”, but said “it’s all time we got talking about it”.
“That goes for any new government too, who needs to mandate time on this issue, and financial education should be absolutely central to this.”
