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

Advisers expecting more of asset managers since Consumer Duty

Advisers expecting more of asset managers since Consumer Duty

‘We actually need to understand one another better’

Hope Coumbe
clock 28 March 2024 • 1 min read
Fears tech limitations could stall MPS on its upward trajectory

Fears tech limitations could stall MPS on its upward trajectory

‘There have been a few changes and challenges around growth in general’

Hope Coumbe
clock 27 March 2024 • 1 min read
Partner Insight: Beyond 60/40

Partner Insight: Beyond 60/40

Invesco
clock 27 March 2024 • 5 min read