Choose Income Assets for Your Pension

As the Treasury confirms millions of Britons will be provided with independent advice on retiring, we look at ways to maximise your pension pot with income paying investments

Emma Wall 21 July, 2014 | 1:00PM
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This article is part of Morningstar's Guide to Investing for Income

Millions of people are now entitled to free impartial advice on retiring, George Osborne has today confirmed. After announcing the plans for pension freedom in March’s Budget, the Chancellor has today given details of how workers will be eligible for financial advice on retiring.

In the Budget Osborne said that savers should be trusted with their own hard earned cash, and said that “no one will have to buy an annuity” from April 2015. In total 18 million people will be able to benefit from the changes to pension system should they wish to. But this financial freedom raised concerns about how many pensioners will make their pot last the ever increasing retirement period. Couples aged 65 today have a 45% probability that at least one of them lives to 90. This means you will have to make your pension pot last up to 25 years – which for many people is the same amount of time they have spent building up reserves.

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About Author

Emma Wall  is former Senior International Editor for Morningstar

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