Nanny-state plans to force pension savers to invest cautiously ahead of retirement could cost them thousands of pounds, experts warn. The funds, which typically deliver lower returns, are a throwback to when most savers bought an annuity with their retirement pot. Yet the Financial Conduct Authority (FCA) has suggested making lifestyling funds the default route for do-it-yourself pension savers who are about to hit retirement age. But critics say moving pension savings into low-risk lifestyling funds too early can be costly if you do not end up buying an annuity. The Financial Conduct Authority has suggested making lifestyling funds the default route for do-it-yourself pension savers about to hit retirement ageHe says lifestyling investments in a pension will normally be called ‘long gilt’ or ‘long corporate bond’.

Source: Daily Mail April 06, 2022 04:03 UTC