The value of the pension pot also held up well on this income. With the growth fund, the research found a saver living 25 years after retiring would, on average, be able to pass on a pension pot worth about £20,000 in today’s money.
Mr Greetham concluded: "It goes without saying that your retirement income won’t last as long if you take a lot of money out of the pension pot early on.
"For most people the right approach will be to aim for steady growth but to reduce risk by putting your money into a multi asset fund that spreads investments across a range of different (asset classes)."
Paul Gibson, Chartered financial planner at Granite Financial Planning, said: "The research is hardly groundbreaking. Retirement can last 30 years plus so too cautious an investment approach will lead to individuals running out of money or having to cut back.
"Concentrated esoteric portfolios are always a bad idea and this is especially so when moving into retirement
"A diversified approach is always likely to do better but active fund manager risk and high charges risk should also be considered as both can lead to a potentially poorer outcome."
carmen.reichman@ft.com
