The increase in average life expectancy is great news for all of us, but the main challenge is that it makes funding our retirement considerably more expensive. Unfortunately the problem is compounded by the low annuity rates that are the traditional way of generating a pension, with a fund of £100,000 only buying a 65-year-old an annual inflation-linked income of £3,165.
An annuity is an insurance contract that pays a fixed or rising level of income for the rest of the purchaser's life. Until the new pension freedoms were introduced in April 2015, most people with a defined contribution pension – where your income depends on how much you save – had little option but to use the money they had accumulated to buy one of these products.
by Evil Knievil| Evil Diaries| 2 mins. to read In the light of events in and around Catalonia I reached for George Orwell's Homage to Catalonia. It is a truly astonishing book (£6 on Amazon) in that Orwell was only 34 years or so old when he wrote it.
by Nick Sudbury| Funds| 1 mins. to read Real-Estate Investment Trusts (REITs) can provide a valuable source of income and a useful hedge against inflation as the underlying property values rise over time, but the share prices of many of these funds have been bid up to dangerous levels.
Material contained within Master Investor Magazine and its website is for general information purposes only and is not intended to be relied upon by individual readers in making (or refraining from making) any specific investment decisions. Master Investor Ltd. does not accept any liability for any losses suffered by any user as a result or any such decision.
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