State Pension is peanuts
The State Pension is peanuts. Here
are 3 easy ways to boost your retirement income
The State Pension – the income that’s paid to people in
retirement by the UK government – is a worryingly low amount of money.
Currently, it’s just £200 per week, and that’s if you qualify for the full
amount. Many people don’t.
Equity income funds
An equity income fund is a particular type of investment fund
that predominantly focuses on generating regular income payments for investors,
along with a little bit of capital growth as well. Often offering yields of
around 4% or so, equity income funds are extremely popular with UK retirees.
Exchange-traded funds
Alternatively, you could also consider exchange-traded funds
(ETFs). These aim to track a stock market index, such as the FTSE 100, and can
also be an effective way of generating a second income stream
Dividend stocks
Finally, a third option to consider is constructing your own
portfolio of dividend stocks. These are stocks that pay out a proportion of the
company’s profits to shareholders in cash regularly. With these kinds
of stocks, building up a passive income stream is easy, although
dividend payments are not guaranteed.
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