The choices investors face retirement - September 2019
Investors who are near or already in retirement face the most challenging of needs: investing their life savings to simultaneously generate an immediate income and to ensure long-term capital growth.
In this issue, we discuss the key challenges that such investors will encounter during retirement when invested in a market-linked living annuity, explain how two of our funds are specifically managed to address those challenges and share practical tips that may guide appropriately prudent retirement income planning.
THE CHOICES INVESTORS FACE AT RETIREMENT
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.
THE TWO MAIN ANNUITY OPTIONS AT RETIREMENT
Retirement savers currently have two main options from which to draw their post-retirement income: a living (market-linked) 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: