As Quinn approaches retirement the main goal is to ensure his pension assets last as long as possible. When selecting the right investment to achieve this, there are three key areas to consider:
- longevity risk - given Quinn’s age, it’s natural to consider his life expectancy and whether that will exceed expectations
- the effects of inflation - the returns on Quinn’s investment must be able to mitigate against inflation, which is currently at an all-time high
- the sequence of return risk and concentration risk need to be carefully managed to maintain his level of income throughout retirement.