Two Preparations You Can Start Now to Keep Your iDeCo Retirement Funds Safe from a Market Crash

This session addresses the concern of a market crash happening exactly when you begin withdrawing your iDeCo retirement funds. It explains why money set aside for retirement drawdown has to be managed differently from surplus funds invested through NISA, introduces the three risks that matter at retirement age, and lays out two practical measures to take before and during the withdrawal phase. The viewpoint throughout is your total assets, including NISA and savings, rather than iDeCo in isolation.

■ How retirement funds differ from surplus funds
- iDeCo is built for drawdown, so the timing and amount of withdrawals are largely predetermined
- The same index fund calls for a different strategy depending on its intended use and how long you can afford to hold it

■ Three risks at retirement age
- Longevity risk, cognitive decline risk, and sequence of returns risk
- A five-year numerical example showing how identical average returns produce different final balances depending on their order

■ Two preparations for the withdrawal phase
- Raise the share of cash and deposits across your total assets as withdrawal approaches, using tools such as allocation changes and switches inside iDeCo
- Withdraw at a fixed rate rather than a fixed amount, the reverse of dollar-cost averaging, and pair this with a life plan that estimates retirement expenses alongside national pension, employees' pension, and other income

It is intended for people already using iDeCo who plan to take the balance as a lump sum, and it also notes where its scope ends, such as the choice between NISA and iDeCo being covered in a separate discussion. Viewers can expect a clearer framework for setting an exit strategy, deciding how much cash to hold, and planning withdrawals, with the next step being to estimate the money they will need in retirement. No single recommended product is given, since the answer depends on each person's age, environment, and circumstances.