Rule of thumb drawdown rates lead to 'retirement ruin'

James Phillips
clock • 2 min read

The "rules of thumb" for sustainable drawdown income should be abandoned and replaced with tailored rates based on individual circumstances, Aegon has said.

A 65-year old taking income from their pot at 4% a year has a 20% chance of running out of money within 30 years, the firm said in a report with actuarial firm EValue. The firms added this could...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Defined Contribution

PPI: Over three million pension pots remain lost in the UK

PPI: Over three million pension pots remain lost in the UK

PPI says average value of pot is more than £6,000, with total asset values hitting £18.7bn

Martin Richmond
clock 12 October 2026 • 4 min read
Partner Insight: Why active investing is becoming more outcome-oriented

Partner Insight: Why active investing is becoming more outcome-oriented

As pension schemes and institutional investors face increasingly complex objectives, active investing is evolving beyond security selection towards more purposeful portfolio design and implementation.

Samantha Ricciardi, Head of EMEA, Fidelity International
clock 09 October 2026 • 5 min read
PPI: Private sector DC assets could rise by £1trn within 20 years

PPI: Private sector DC assets could rise by £1trn within 20 years

2026 DC Future Book estimates there could be nearly 15 million active members in DC by 2046

Holly Roach
clock 07 October 2026 • 3 min read
Trustpilot