Why income is important
If you’re approaching or are already in retirement, producing an income from your savings can be used to supplement your pension and maintain your standard of living. However, it can be important whatever stage of life you’re at, helping pay for important items, like healthcare costs, or education fees.
Why it makes sense to explore your income options
With interest rates at historic lows, it is becoming harder to achieve a satisfactory level of income from savings accounts or Gilts (government bonds). Meanwhile, the cost of living is rising: fuel costs, for example, are on the increase, and the new 20% VAT rate has made many everyday purchases more expensive. All this means that your income may no longer stretch as far as it once did.
Research from Age UK suggests that these pressures are greatest if you’re close to retirement or drawing a pension, particularly as you are more likely to be dependent on income from your savings to supplement your pension (Source: The Silver RPI, November 2010). But in the current economic climate many of us, whatever our stage in life, may be experiencing pressure on our incomes.
How can I produce an income from my investments?
Even in this tough economic climate and low interest rate environment there are several compelling investment options available that may help you generate an income from your savings.
You should bear in mind that, unlike savings accounts, stock market investments carry a risk to your capital, while any income produced is not guaranteed and can go up or down in value.
Suitability
You should, of course, only consider investments that are right for you. If you are in any doubt about the suitability of an investment, please speak to an independent financial adviser – find an IFA at unbiased.co.uk.
Income solutions from J.P. Morgan Asset Management
Whatever your need for income, we have a range of income solutions that may be appropriate to your needs. Our income-generating funds and investment trusts may help you produce the level of income you require, while a diversified strategy can help minimise the risk to your capital over the long-term.
And if you invest through an Individual Savings Account (ISA), the income you receive will be free of income tax (while any capital growth will be free from capital gains tax). You can invest up to £10,680 in 2011/12.
Find out more about the J.P. Morgan ISA
Essential information
Before investing you should take the time to read all the relevant legal information and make yourself aware of the investment risks involved.
Find out more