Pensioners can still take risks, says Jupiter's Maloney
Pensioners should consider taking greater risks with their investments, according to Jupiter's Director of Pensions Colin Maloney.

Maloney argues that, as it is no longer compulsory for pensioners to purchase an annuity and, with life expectancy increasing, thousands of pensioners are investing on a time frame of more than 20 years with at least part of their retirement savings. On this basis, they need not put all of their money into low risk, low return assets, such as gilts and should, instead, consider investing in equity funds to provide capital growth and income. However, this strategy would require regular review in order to guard against capital erosion and to ensure minimum income requirements.

Colin Maloney said: "The concept that everyone must rush to seek refuge in bonds whenever they reach retirement age should itself be pensioned off. The fact is that, at 60 or 65, people are still making plans for the medium to long term. While they may need access to some funds immediately, others should be managed on a much longer time frame.

"We know that many people are leading active, adventurous lives in their sixties, before they do have to consider settling into a more peaceful old age. Their financial arrangements can reflect that too," he adds.

Jupiter suggests investors consider a "layer cake" approach to post-retirement investment, by which investors can phase their investment plans to coincide with the different phases of retirement.