Pandemic spells end for structured product strategies: 7IM

The sharp dividend cuts expected in the UK and globally this year have blown apart the theory of relying on "natural income" in retirement from shares and bonds, with strategies that follow this approach now looking increasingly vulnerable, according to 7IM. For years, the received wisdom was that buying dividend paying stocks and bonds would enable retirees to leave their capital intact, using only the income from their investments to fund retirement. However, Matthew Yeates, senior investment manager at 7IM, says this theory - which was questionable prior to the crisis in 2020 - is ...