“To give a prime example of an issue that we face, the growing number of people reaching retirement could lead to a shift in the balance of assets under management from accumulation–orientated products to decumulation products, including a variety of income drawdown strategies, some of which are likely to be relatively complex.”
IFAC say this is not necessarily the case. Equity class investment are best suited to the retired – despite what the text books tell you. The retired generation’s income is stable and underwritten by the State, their liabilities reduced and they can take the rough with the smooth knowing their life expectancy at 65 is on average for a further 20 years of life source office of national statistics https://www.ons.gov.uk/peoplepopulationandcommunity/birthsdeathsandmarriages/lifeexpectancies/bulletins/nationallifetablesunitedkingdom/2014to2016
Compare this to the younger “sandwich-generation” burdened by children and dementia parents, job insecurity and mortgage payments – a situation usually requiring two working parents just to get by.