THE PRESENT INVESTOR: Can you be sure that your Rententopf reaches its age of 100?

THE PRESENT INVESTOR: Can you be sure that your Rententopf reaches its age of 100?

The city guard has again warned of the dangers that might come with trying to blow up our retirement savings.

It's easy to be blase, but if we're forced to retire comfortably and save, we should make sure that the money will last a lifetime.

The alternative is to rely on an increasingly congested state when we are very vulnerable.

But how long do we need the money? According to the National Statistics Office, men between the ages of 60 and 65 are likely to live 86 and women up to 88 years.

Today, men and women between the ages of 60 and 65 have a 1: 4 chance of living between 94 and 96 years. And a fifth of 55-year-old women will probably be 100 years old

Today, men and women between the ages of 60 and 65 have a 1: 4 chance of living between 94 and 96 years. And a fifth of 55-year-old women will probably be 100 years old

Today, men and women between the ages of 60 and 65 have a 1: 4 chance of living between 94 and 96 years. And a fifth of 55-year-old women will probably be 100 years old

However, based on average life expectancy, more than half could live longer.

The key point is that they have a 1: 4 chance of living until 94 and 96, respectively. And a fifth of 55-year-old women will probably be 100 years old.

If you retire at the age of 65, it is not so much a planning period of 20 years as it is for 35 years, because every couple has a chance to get into the late 90s.

Our pensions have to take a long time. For example, my mother-in-law and her two sisters are in their naughty 90s. Everyone is nimble, active and eager to hear from the Queen.

Lamborghinis may have passed by, but lavish birthday parties, holidays, and other specials certainly did not exist.

Mrs H. and I both have some pension to provide a basic income. But I've spent much of my professional life as a freelancer, and Ms. H., like many women, has had breaks at work and worked part-time.

That is why we also rely on our listed bonds and Isas.

For persons without a guaranteed pension, it is still possible to convert part of your pension into a pension and pay a lifelong income.

However, prices remain pitifully low. A 65-year-old couple seeking an inflation-linked income will, at best, receive £ 3,200 a year if they give up a £ 100,000 annuity.

If the person who buys the annuity dies, the widow or widower receives half the income for the rest of their lives.

Equities and mutual funds can generate returns and provide inflation protection, albeit with a stock market risk.

And unlike an annuity, if a partner dies, the survivor receives full income.

But how much can you take? If you make 6 percent of your investment, you should keep up with inflation by limiting your income to 3.5 percent.

For persons without a guaranteed pension, it is still possible to convert part of your pension into a pension and pay a lifelong income. However, prices remain pitifully low

For persons without a guaranteed pension, it is still possible to convert part of your pension into a pension and pay a lifelong income. However, prices remain pitifully low

For persons without a guaranteed pension, it is still possible to convert part of your pension into a pension and pay a lifelong income. However, prices remain pitifully low

With a £ 100,000 pension fund over the age of 65, you would start with £ 3,500. At age 90, you had a £ 176,000 fund that paid £ 6,160 a year.

If you take an income of 5 percent (£ 5,000), your income would have gone up from 90 with a fund from £ 119,000 to £ 5,952.

Purchasing power would go down with inflation, and you would be more likely to exhaust your capital.

Graham Spooner, analyst for investment research at The Share Center, warns that some stock dividends are questionable, pointing out that the return (that is, the percentage of the stock price) of some large companies has risen.

"This increases uncertainty – if the return looks too good to be true, there is every chance.

"It would not be a big surprise if phrases such as lowering dividends would become more frequent in the future."

He said stocks that could be of interest for retirement income include the pharmaceutical company GlaxoSmithKline, with a 5.3 percent return, the global alcohol company Diageo (2.44 percent), which should benefit from growth in India and China, and Compass (2.2 percent)) and Lloyds Banking Group (5.3 percent).

Note that these are examples, not recommendations.

Direct investment is cheap but includes homework. If you prefer someone else to make the decisions, mutual funds are an option.

Sanlam UK publishes an analysis that highlights the best possible results for income generation while looking at risk and total returns, including capital growth.

The most consistent in the past five years, according to this report, were Slater Income (4.3%), Axa Framlington Monthly Income (4.37%), LF Miton UK Multi Cap Income (4.07%), Artemis Income (4.22%) Percent) and Marlborough Multi Cap Income (4.37 percent).

Investment trusts can offer lower costs than other investment funds. These companies invest in shares of other companies.

The Association of Investment Companies publishes a list of dividend heroes who have increased their income over the previous year.

At the top is the London Investment Trust with 52 years of growth. It currently pays 4.46 percent.

The Bankers Investment Trust (2.3 percent), Alliance Trust (1.83 percent) and Caledonia Investments (2.05 percent) are also over 50 years old. Murray Income (4.58 percent) has 45 years and the Merchants Trust (5.19 percent) 36.

Investment trusts have the flexibility to withhold up to 15 percent of the income they receive with dividends so they can enter those reserves in bad years.

But dividend income is not the alpha and omega.

There is nothing wrong with taking some profits from capital growth as income.

It is our money. We should not spend everything at once!

t.hazell@dailymail.co.uk

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