How long is a piece of string.
Traditionally it was the common view that one should seek to begin de risking gradually in the last 5 to 7 years, ie moving out on Equities and into Bonds and Cash. And the logic for this was since you had to ultimately convert 75% of the fund into an Annuity, Bonds were the basis on which Annuity rates were calculated.
But since the introduction of ARFs that logic is not so clear.
So I would consider what you intend to do with the 75% (after taking the 25% retirement lump sum) on retirement. If you strategy will be to buy an Annuity, then I would consider a gradual de risking strategy in the run- in to retirement. In this scenario you investment time horizon is only 7 years.
If however you intend to invest the 75% into an ARF, then you need to consider what sort of investment strategy you will adopt for the ARF. I makes little sense (in my opinion) to gradually de risk to say 100% Bonds/Cash if your investment strategy for the ARF will be more like a Managed Fund. In this scenario you investment time horizon is 7 years + 20 years (approx).
I accept that 25% of the fund will be taken as a lump sum on retirement, but I would be reluctant to let the 25% guide the 75%.
Any advisor who says that they advise in relation to investment strategy on a weekly basis, I would steer clear of. The old adage “it’s about time not timing” still holds good.