You can take money from your pension without the pot running out
The Times looks at the two main concepts for investors seeking an income in retirement. The first is income investing. This is where you fund your retirement purely from “natural” yield such as interest or dividends.
This has been popular because it means that you will never run out of money, will not have to suddenly sell investments even though the price has just fallen and are guaranteed a tidy lump sum to pass on to your family. The problem is with interest rates at rock bottom, the strategy may not generate enough money to live on. This means they may need a more flexible approach. We cover this in detail here and here.
‘I spent £5,000 topping up my state pension and it was a huge mistake’
The Telegraph covers the story of how nearly 400,000 people have paid to boost their state pension since the new flat rate was introduced in 2016. It covers the story of how easy it is to pay too much to top up your eligibility. You can find more on this here.
UK pensions shortfall is ‘tip of the iceberg’, says former minister
The Guardian covers former pensions minister Steve Webb’s comment that the pension underpayment scandal could be the tip of the iceberg affecting many thousands more people.
More than £1bn of UK state pensions – an average of £8,900 for each of the 134,000 pensioners affected – has been underpaid due to repeated human errors that were almost inevitable amid complex rules and outdated IT systems, a spending watchdog has said.
We covered this in detail here.