The scramble for income has lasted too long for most investors, with interest rates at historic lows for almost six years running. And last week the Bank of England’s monetary policy committee (MPC) members prolonged the pain by again voting to maintain Bank Rate at 0.5 per cent. George Osborne’s announcement to extend high-interest NS&I ‘pensioner bonds’ for another three months is no income panacea for retired investors with substantial portfolios. Many investors have already moved up the risk scale from cash deposits in search of higher incomes. But is this approach sustainable? And which funds and shares should you be buying in a continuing environment of rock-bottom interest rates and near-zero inflation?
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