top of page

Decumulation is where the greatest danger lies

Writer's picture: Robin PowellRobin Powell

Updated: Oct 10, 2024





People tend to focus on the accumulation phase of investing. But the decumulation phase, when you’re spending down your assets, is often more problematical. Having an adviser with specialist expertise in retirement planning is hugely beneficial.



On the face of it, wealth management and mountain climbing may seem to have little in common, but there are several similarities between the two. Both require goal setting and long-term planning. To succeed at either you need to have endurance and persistence, but also adaptability to changing conditions. And, for the vast majority of people, both require expert help.


Another similarity is that wealth management and mountain climbing both involve risk. No matter how prepared you are, things don’t always going to plan, and factors beyond your control can soon put you in jeopardy.


An interesting fact about mountain climbing is that the risk tends to be greater on the way down a mountain than on the way up. Certainly, more accidents occur in the descent than the ascent. Again, it’s the same with investing. Although most of the focus tends to be on what we call the accumulation phase — in other words, building wealth in preparation for retirement — the decumulation, or drawdown, phase is much more challenging and, yes, potentially more dangerous.




© The Evidence-Based Investor MMXXIV. All rights reserved. Unauthorised use and/ or duplication of this material without express and written permission is strictly prohibited.


Regis Media Logo

The Evidence-Based Investor is produced by Regis Media, a specialist provider of content marketing for evidence-based advisers.
Contact Regis Media

  • LinkedIn
  • X
  • Facebook
  • Instagram
  • Youtube
  • TikTok

All content is for informational purposes only. We make no representations as to the accuracy, completeness, suitability or validity of any information on this site and will not be liable for any errors or omissions or any damages arising from its display or use.

Full disclaimer.

© 2024 The Evidence-Based Investor. All rights reserved.

bottom of page