If you have investment assets and pension funds designed to generate income in retirement, the traditional route for income is bond funds. But if bond yields are low, will you be able to meet your expenditure needs?
All insurance companies use bonds to provide the certainty behind annuity payments as they are guaranteed for life. So if you want more certainty, bonds are important. Here lies a dilemma. Long-term income peace of mind against expenditure lifestyle. At present, something has to give. What are you prepared to compromise on? As you get older and perhaps find it harder to understand your finances, do you want to be faced with decisions about income risk?
There are always so many issues to think about it. Want a conversation?