When you are approaching retirement big dips in the market can have an outsized impact on your investments because of a concept known as sequencing risk. Understanding how to manage sequencing risk can help you feel more confident about your future savings and income when markets are volatile.
It’s worth remembering that whilst you are a contributor, SASS is a hybrid scheme, which is a combination of accumulation and defined benefit. This means your Employer Financed Benefit and Basic benefit are not impacted by investment performance. Once you leave SASS you may decide to invest your money.
In this article we explain sequencing risk and discuss the things to keep in mind to help your savings last well into your retirement.