Seeing units reduce each month that cannot be replaced is an understandable concern.
Keeping sufficient monies in a cash fund from outset can be appropriate but in this low interest environment this can also be criticised as inefficient asset allocation.
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It might be prudent therefore to consider taking income from other available sources until markets stabilise.
As highlighted earlier, other tax wrappers and even deposit accounts can provide a short term solution to mitigate what is often referred to as pound cost ravaging.
Nigel Orange is a technical support manager with Canada Life’s ican Technical Services team
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