Pre-retirees believe 7% withdrawal rate is safe

Daren O'Brien, director at London-based Aurora Financial Solutions, said the majority of their clients know and understand the risks involved in taking out too much money from their investments and running out.

"With the new pension freedoms we have had new clients with overly optimistic growth expectations.  Also we have those wanting to take any and all the recent growth and not being fully prepared for the downside of investing.  

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"We make the downside very clear to clients and remind them constantly that these are medium to long term investments."