A couple of weeks ago I wrote about living annuities, with the message – supported by expert opinion – that living-annuity pensioners need to be able to cope with stock-market volatility if they are drawing more than 4% a year for an income. The argument was that only by being heavily invested in equities (at least 60%) could you achieve the after-inflation returns required to sustain that level of income over the long term.
A living annuity, just to remind you, is a type of pension in which you choose the underlying investments
