As it is no longer compulsory for pensioners to buy an annuity, and with an increase in longevity, pensioners should take more risks with their investments, claims Jupiter.
It argues with life expectancy increasing, thousands of pensioners are investing on a time frame of more than 20 years with at least part of their retirement savings. Because of this, it suggests they do not need to put all of their money into low risk, low return assets, such as gilts and should, instead, consider investing in equity funds to provide capital growth and income. But Jupiter warns this strategy would require regular review in order to guard against capital erosion and to ensure minimum income requirements, so it suggests investors consider a “layer cake” approach to pensi...
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