Changes to rules on pensions and higher education funding will place a greater burden on families and individuals, warns Witan Investment Trust chief executive Andrew Bell.
Changes, including a higher UK public sector retirement and increased university fees, will have an indirect effect on new investors, says Bell.
The Witan chief executive says these changes come at a time when yields on cash and government bonds are at record lows, even before inflation is factored in.
“Investing in ’real’ assets such as commercial property and company shares will need to play a part in generating adequate returns for investors”, says Bell.
“If volatility does not moderate, investors will face an uncomfortable choice – either accept apparently inadequate returns from ’safe havens’ or find ways of coping with the valuation risks entailed in seeking higher returns from equities and property (by, for example, phasing investment in instalments or steeling oneself to take a long-term view)”, he adds.
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