5 high yield investments to boost your income in retirement
If you are looking for investments to boost your retirement income, putting some of your savings into an investment ISA is usually a good idea. This allows you to maximise the returns you see on your investment as you do not have to pay tax on the interest or other income you earn (up to the current ISA allowance of £20,000 for the 2017/18 tax year).
There are a wide range of different ISA investment plans to choose from, including those which provide a regular monthly income, or those which offer longer term returns. We have selected five of the top currently available high yield investments to boost your income in retirement.
1) Investec FTSE 100 Enhanced Income Plan
This plan pays 0.38% interest every month for five years, equivalent to 4.56% gross per year. When the plan ends, you will get your initial stake back, subject to the performance of the market.
With long term savings accounts currently offering an average of around 2.20% annual interest, this plan offers attractive returns, if you are happy to put your capital at risk.
The minimum investment is £3,000 and the maximum is £20,000 for an ISA account or £1,000,000 for a non-ISA account.
2) Investec Enhanced Kick Out Plan
This plan offers a kick out facility, where the fund has the potential for maturity at the end of each year of the six year plan. The plan returns 10.25% in any given year if the five-day average closing level of the FTSE 100 is higher than when the plan began on the anniversary of this date each year.
This plan can provide a competitive return even if the FTSE stays relatively flat. The minimum investment is £3,000 and the maximum is £20,000 for an ISA investment or £1,000,000 for a non-ISA investment.
3) Virgin Money Stocks and Shares ISAs
Virgin Money provide various stocks and shares ISAs for those looking to generate an income from their savings, offering various levels of risk and return.
These include funds which place your investments into government bonds and highly rated companies, those which spread your money between UK and overseas investments to diversify your portfolio and a UK FTSE All-Share Fund which puts your capital into 600+ companies on the FTSE All-Share Index.
4) Focus FTSE Monthly Income Plan
This plan offers a fixed monthly income of 0.35% (equivalent to 4.20% annually) and at the end of the plan your capital is returned, as long as the FTSE does not fall by more than 40% relative to when the plan started.
The minimum investment is £5,000 and the maximum is £20,000 for ISA accounts, while there is no limit for direct investments. This plan offers significantly better returns than current long term savings rates, so is another good option if you want a regular income and are willing to risk your capital.
5) Nutmeg ISAs
Nutmeg offer straightforward, flexible investment ISAs which can be set up within minutes online and which allow you to withdraw your money at any time.
With a minimum investment of £500 and no minimum investment period, Nutmeg ISAs are popular with both experienced and less experienced investors. Nutmeg provide diversified investment portfolios managed by an experienced team for a low fee of 0.25-0.75%.
Compare high yield investments to boost your retirement income
Take a look at the range of investment ISAs on our website for more ideas on high yield investments that can help boost your retirement income. There are a range of plans to suit different income objectives, allowing you to quickly find the right investment plan for you.