Dan Kemp: So as people remember there was a huge change in pensions a few months ago and so now we have some idea about how people are reacting to the new rules. And what we can see is that a lot of people are choosing to withdraw money from their pension. But these are typically very small pots. They are not being used to buy Lamborghinis I guess they are typically being used to go on holiday or do some home improvements or maybe even pay off some debts.
So the real question becomes what should people do if they are looking to build an income portfolio themselves, look after their own retirement. And obviously our first response would be get some good financial advice that's absolutely key. But if you are doing it yourself there are really three things to look out for. The first is build a portfolio with a stable income in a such a low interest rate world so many income products that look like they have a high yield have a really big catch and sometimes that could be higher risk poor liquidity or even bad tax treatment so look out for that.
Second make sure that your income is coming from a diversified source, don’t have all your income eggs in one basket but make sure you have different sources of income paying you each month or each quarter. And then thirdly however you are investing your money whether it's through a platform or through a product. Make sure that is able to actually pay you the income. Our operations team here spends a lot of their time making sure the platforms we use for our portfolios are actually able to pay the income out. There is no point in generating it if you never get your hands on it.
