Income and Growth Challenge

The Income and Growth Challenge - October 2020

2020 SEPTEMBER - Corolab Investment Guide

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The choices you face at retirement - September 2020

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Coronation Insights

Coronation Insights


Investors who are near or already in retirement face the most challenging of needs: not only do they need to invest their life savings to facilitate a regular income drawdown (for which they need capital preservation in the short term), but also for that income drawdown to be sustainable over a multidecade time horizon (for which you require longer-term capital growth that can deliver inflation-beating returns).

As living (market-linked) annuities are often the most appropriate option from which to draw a retirement income, this issue discusses the key challenges that such investors will encounter during retirement, explain how being invested in the appropriate mandate can prevent the next retiree disappointment that we believe is in the making and share practical tips that may guide appropriately prudent retirement income planning.

Investors who are close to retirement need to make two choices with respect to the retirement savings they have accumulated over their working lives. Both decisions require careful thought and input from a qualified financial adviser.

Once you’ve decided on the amount that you want to invest, you have two main options from which to draw your retirement income: a living annuity or a guaranteed (life) annuity underwritten by a life insurance company. Both products have their own set of advantages and limitations, as outlined in the following table: