The Income Conundrum.

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Mark Carney, the Bank of England Governor, delivered good news to the markets with his recent cut in interest rates (and further quantitative easing). It may have been good news to markets but was it good news for people trying to generate income from their investments? Certainly not good news for those relying on bank interest. To generate £10,000 of income (less than half of National Average wage) with an interest rate of 0.1% you would have to deposit £10,000,000. This is over ten times the maximum that an investor is allowed to have in their pension fund – let alone the fact that the vast majority of people will get nowhere near the maximum allowed.

So what can investors do? How can they make sure they have a sustainable income in the long run?

Why now is the time to review your pension

Taking an active interest in your retirement savings

Millions of savers currently spend very little time reviewing their pensions, with more than a quarter of savers (28%) admitting to never reviewing their retirement savings, while almost a fifth (19%) of those with a pension said they review it less than once every five years[1] according to figures released by Aviva.

Gender also has a role to play. The number of women who are not engaged with their pension is particularly high, with almost a third (32%) saying they never review their savings, compared to a quarter (25%) of men.


Gill Prince, a Milton Keynes-based freelance urban, landscape and travel photographer has announced a photography book initiative as part of Milton Keynes Council’s 50th anniversary celebrations.