Income: the cornerstone of a comfortable future

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We're living longer and healthier lives, which increases the need for a regular income that can last longer too and for the duration of retirement - the cornerstone of a comfortable future.

With traditional pension planning, investors are often encouraged to build the biggest investment pot and then “encash”, or sell, units or shares to generate the necessary income each year. However, if the value of the units (or shares) in the funds that you are invested in fall, you then need to sell more units to generate the same level of income. This could mean that you start to use up your pot of units too quickly. What if your pot runs dry, leaving you without enough units to generate the income you need?

MoneyWeek

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