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
clock

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 - ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Measure for measure: How to track your tracker fund

Measure for measure: How to track your tracker fund

Tracking difference and tracking error

Terry McGivern
clock 28 January 2026 • 3 min read
SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

SJP and AJ Bell pivot from US mega-caps in MPS as concentration woes continue

Healthcare, energy and EM preferred

Linus Uhlig
clock 28 January 2026 • 2 min read
Wealth managers turn to private markets to offset geopolitical risks

Wealth managers turn to private markets to offset geopolitical risks

60% allocation in 2025

Patrick Brusnahan
clock 26 January 2026 • 1 min read