Goldman Sachs analysts, for example, project the S&P 500 may only generate an average annual return of 3% over the next 10 years due to high valuations and the resulting concentration of value in the index’s biggest holdings.

JPMorgan analysts believe the index will deliver an annual return of just 6% over the next decade.

U have 100k to invest for your retirement in ten years time.

If u buy a S&P tracker and let’s be optimistic and use the 6% growth figure, your 100k could be worth
£179k, could be more could be less.

If u use the 4% rule that would give u income of £7,160 pa, u would need a cash buffer but at the present time u could earn 4% on that cash buffer.

If u buy an annuity, lets be generous again and use a 6% figure, income of £10,174 pa

Canada Life figures show the 65-year-old with a £100,000 pension pot could buy an annuity linked to the retail price index (RPI) that would generate a starting annual income of £3,896. That’s up from £2,195 in the New Year following a 77% spike in rates this year.
Oct 22

It could be less and u have to surrender all your capital but it’s only your retirement u are gambling with.

If u invest in a portfolio of income producing Trusts u could earn 8% and if u compound the dividends at 7% u would have income of 16k pa.
If u leave the funds uncrystallized 25% of that would be tax free and all future dividends would also be 25% tax free. U could pass on your fund to your nearest and dearest but remember those wee cats and dogs.

It’s only your retirement u are gambling with so it depends if u are a gambler or an investor. GL