Opinion: 2020 DC Default Review - When you walk through a storm...
2020 was a year like no other, with the outbreak of the Covid-19 pandemic, drawn-out Brexit negotiations and a stormy US election all giving fund managers plenty to consider. The economic outlook for 2021 may look brighter as lockdown conditions ease and economies reopen, but there is continued uncertainty which could see another volatile year for markets.
Based on the 2020 experience, younger investors may benefit again by remaining calm and walking on through the wind and the rain. Older investors may find their retirement dreams are tossed and blown if market volatility materialises but the benefits from lifestyle de-risking should provide greater protection.