Risk across
the retirement journey
How risk, portfolio priorities and investor behaviour evolve across the retirement journey.
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Retirement is one of the clearest examples of how risk attitudes and portfolio needs evolve over time. As it moves from concept to reality, market volatility becomes more tangible, behavioural and personal.
The findings draw on BNY Investments' ‘Retirement Advice in the UK: Turning Insight into Outcomes’ research, which highlights how client needs, behaviours and adviser priorities evolve across the retirement journey.
From pre-retirement through to transition and established retirement – perceptions of risk shift significantly, reshaping portfolio priorities, investment decisions and the role of advice.
01 Pre-retirement
Average age 54
client Mindset
“Markets recover over time”
01
Retirement remains a future concept
02
Market volatility remains psychologically manageable
Key risk
Insufficient long-term growth
Research insight
75
%
of advisers say clients misjudge their retirement income needs.
Portfolio focus
Growth and higher-risk assets
Adviser role and focus
Build confidence in retirement readiness before de-risking
01
Stress-test retirement assumptions
02
Avoid premature de-risking
03
Balance growth ambitions with sequencing risk
02 TRANSITION TO retirement
Average age 60
client Mindset
“What if markets fall now?”
01
Retirement is a near-term reality
02
Portfolio losses become materially and emotionally significant
Key risk
Sequencing risk
Research insight
32
%
of clients say they would feel confident managing a pension independently at this stage
Portfolio focus
Downside protection and smoother returns
Adviser role and focus
Develop a sustainable retirement income plan
01
Manage emotional reactions to volatility
02
Model sustainable withdrawal rates
03
Build confidence around income durability and flexibility
03 established retirement
Average age 62
client Mindset
“Can my income sustain my lifestyle?”
01
Retirement is an ongoing reality
02
Portfolio stability becomes increasingly tied to lifestyle confidence
Key risk
Income sustainability
Research insight
64
%
of advisers use cash flow modelling to determine a sustainable withdrawal rate
Portfolio focus
Capital preservation and income resilience
Adviser role and focus
Maintain income sustainability and lifestyle confidence
01
Maintain sustainable income through market conditions
02
Balance longevity, inflation and legacy needs
03
Provide reassurance during periods of market stress
