Investing in the decumulation phase

Since the 1960s, the design of investment solutions for ­investors seeking to ­accumulate assets has focused on finding diversified asset allocation strategies which ­maximise growth for some defined level of risk. In contrast to accumulation, the retirement ‘decumulation’ ­investor is primarily concerned with ­generating a series of ­retirement cash flows over a term of up to at least 30 years. This cash flow ­requirement could be made up of different components: a ­minimum required lifetime income, a higher ‘lifestyle’ income early in ­retirement, additional expenses such as care costs...