How to construct the perfect retirement portfolio

ON AA

As we all know, the number of people over 65 in the UK relative to the population as a whole has increased rapidly over the last few decades and this trend will continue with the baby boomer generation now reaching retirement age.

Meanwhile, according to actuarial figures the average life expectancy in Britain is now around 80 with of course many people living considerably longer than this.  In my view the industry faces a real challenge in how to satisfy the demands of this group of investors in an era of record low interest rates and stubbornly high inflation. In years gone by the advice would almost certainly have been to sell equities and buy higher income producing government bonds. However, with 10 year gilts currently yielding around half that of the UK stockmarket and producing a negative real return ...