What is sustainable income?
In an endeavor to simplify a complex area some financial institutions publish what they believe to be the ‘safe’ withdrawal rate that can be made from investments before funds are exhausted. Typically, this is of relevance to retiring individuals who have accumulated savings and need to know how long they will last. Although not an exact science by any imagination many studies in the past have indicated that a return of 4% per annum is sustainable in retirement.
Aegon have recently published a report that has downgraded the 4% to 3.23%. A sign of perhaps a less certain future and increasing longevity.
This does of course depend on many factors and the only way to understand withdrawal rates that are relevant to you as an individual is to seek further advice.
Look no further!