Risk vs return vs retirement: A new battle in the fight for income

Risk vs return vs retirement: A new battle in the fight for income

Laura Miller
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With QE having sunk yields on safe haven sovereign debt, those seeking an income in later years face having to reassess their attitude to risk.

People want the moon on a stick, they just don't want to climb up and get it. This is especially true for those at, in, or near retirement. Ask the Baby Boomers, ‘Want to take risk with your hard earned cash?' - No! ‘Want returns high enough to give you an income to live on for the next thirty years, the longest retirement ever experienced by a generation?' - Yes! The problem is income generating yields, particularly on low risk developed country sovereign debt traditionally favoured by those approaching retirement, are at historic lows as a result of QE. This is not an accident - ...

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