You're investing for income, which is an alternative goal. Amount X at time Y is what you do pre-retirement.Harold wrote:If you're not investing to reach a goal such as amount X at time Y (which an ultra-safe pension would at least partially satisfy), what are you investing for?
Seems to me converting the pension to a bond and adjusting your allocation accordingly is a very circular (and less certain) way of approaching it.
Perhaps if (as is likely) the pension's not inflation-indexed, there's a little added complexity. But otherwise I'm not sure I see the point of the bond-conversion exercise.
Converting pension to a bond allows you to better manage the riskiness of the portfolio.