'Lifestyling' and early retirement

GazzaBloom

Another vote against “life styling” here. I take the view that it actually increases the risks in retirement having this switched on, the risk of running out of money in later life. People may have to work longer to build the level of pension funds they need, as growth is stifled in the 10 years leading up to retirement, as they push against the headwind of the life styling.

All those who have been seeing their pension balances moved over to “lower risk” higher percentage bond funds by the life styling algorithm, over the last few years, have had the rug well and truly pulled from under their feet in 2022, with no immediate prospect of those losses being recovered in the short term.

ex-pat_scot

Lifestyling is a throwback to the run up to purchasing an annuity at retirement, where you wanted a fair bit of certainty as you approached your retirement date.
Nowadays, I want the optimised market returns to see me and Mrs XPS through 35(+) years of drawdown from my DC pots.
2 x SPs, plus small amounts of DB (and the possibility of deferring taking the SP, to boost its value as an income floor in later retirement), means that the basic needs are covered.
I'm happy to roll with the market movements, particularly in the early days where Sequence of Returns Risk could derail rigid plans. I could go back as a consultant, or work part time locally in hospitality, or do any number of hybrid things (assuming ongoing health), before the CV decayed too badly.
I'm fully invested in global diversified low cost passive ETFs, and plan to remain so for the long haul. I'm approaching 55, and will naturally have a keen interest in watching how things play out.

Vigilance and flexibility.

Dandytf

older_and_no_wiser said:

Another one here in favour of NOT reducing risk of funds in retirement. 

Whilst avoiding risk reduction, I wonder as late Sipp starter if I have enough years to reap rewards of Riskier funds.
Though only from 50's to decide in later years.
Interesting, is reducing Risk still recommended.