Alistair Wilson: Is a 'natural yield' strategy fit for the new pensions world?

For those clients able to do so, adopting a natural yield strategy - in other words, aiming to harvest income and leave the underlying capital intact - can help to sustain their savings through retirement. Generating a steady and reliable income for clients in retirement is the Holy Grail for many advisers - and never more so than since the Government scrapped compulsory annuities. But is the industry's approach to natural yield fit for the new pensions landscape? Over the past 10 years, a portfolio mirroring the FTSE All-Share index would have returned an average yield of 3.99% a yea...