“In the pre-retirement stage, what you don’t want is a lot of volatility in returns, but on the other hand, you can’t afford to not earn a return,” Mr Padowitz said.

Pre-retirees should be aware they are currently faced with a different investment environment to the previous three decades, Mr Padowitz added.

“For example, following a 30-year bull market in fixed income coupled with the zero interest rate policies adopted by major central banks, the risk versus return dynamic on bonds is now decidedly negative,” he said.

“Therefore, investment strategies trying to include the three aims of low risk, maintaining living standards, and dealing with longevity, are blending incompatible aims.

“The reality is that in retirement risk must be maintained or even increased. This may sound concerning for many retirees, but the risk of an underfunded pension should be more alarming.”