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How to Fund the Pension Pot

How to Fund the Pension Pot

What do you do if you are about to enjoy 20 years in retirement but only have enough money for eight of these years? According to the stats, that’s the position of the ‘average’ person in the UK.

Add to the mix the unprecedented period of low interest rates currently.

US$16 trillion of the world’s government bonds in issue are currently trading with a negative coupon – meaning you actually pay the interest for the privilege of holding a bond rather than receiving it.

The ramifications of this are serious, leaving many investors questioning just how they can generate a sufficient income from their savings or investments.

We believe that equity income can provide a solution – targeting quality companies that pay dividends to shareholders. Globally, companies paid out a record US$1.37 trillion in headline dividends in 2018, up 9.3%

In addition, these high-quality, income-producing equities can provide dividend growth over the longer term, potentially providing insulation from inflation and maintaining your spending power.

They will also offer the opportunity to continue to grow savings pots well into their retirement – something we all need to do more of to beat the ‘average’.

For more Insights from the Securities Trust of Scotland – Click Here

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Our stock-focused approach is driven by in-depth fundamental research and skilled portfolio construction. We invest for the long term to capture equity growth, but only when high-quality opportunities are identified at sensible valuations.

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