A frequent concern among savers for retirement is how market volatility will affect their investment package, especially when one is close to retirement. Such questions emerge more frequently when there is extreme volatility, as we saw recently with the British referendum result in favour of leaving the European Union.
Mathias Sithole, Head of Public Sector and Corporate Consulting at Liberty Corporate, explains how protection is built against volatility. It’s important to avoid short-termism and to remain closely in touch with the risk profile of individual savers – there is certainly no one-size-fits-all solution. – David Williams
This interview is sponsored by Liberty corporate and I’m speaking to Mathias Sithole, who is the head of Public Sector and Corporate Consulting . Morning to you Mathias, the impact of market volatility when someone is close to retirement is always something I think people are concerned with. Of course, we have a recent example of great volatility in the markets, with the uncertainty caused by the British vote to leave the European Union. One does have to ask if you retire at the wrong time, as it were, or you retire at a time when there’s going to be a lot of volatility. Are you disadvantaged? How do you guys compensate for this?
Yes, thanks David for the question. I think in terms of the investment strategy close to retirement if you are in an inappropriate investment strategy you can definitely be negatively impacted by the impact of market volatility. What needs to be happening first for members close to retirement is that you need to get a well thought out investment strategy.