Since the new pension freedoms of 2015 many people have decided to drawdown and withdraw a tax-free lump sum. In the event of a stock market correction this could lead to many being exposed creating a critical gap in consumer awareness. Should share values drop down, investors could risk falling into the trap known as ‘pound-cost-ravaging’. In order to protect your drawdown savings in a market downturn you could consider diversifying your investments, and building up a cash buffer. Seeking professional financial advice could help you to plan for your retirement.
