Investing for Income

Find out more about investing for income...

In the current economic climate with savings rates at a historic low many people are looking for alternative options for income. Investing for income can generally take one of two forms:-

  • Those looking at supplementing their income immediately 
  • Those planning for future income requirements.

For ideas of current income producing investments see the table below:

 Product NameISA OptionIncome YieldMore Info
Income Builder yes7.50%
per annum
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A 5 years and 3 weeks structured investment plan paying a potential maximum quarterly income of 1.875% (equivalent to 7.50% per year). Also available for Stocks & Shares ISA and ISA transfer.
FTSE Income Deposit Planyes7.25%
per annum
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A 6 year capital protected structured deposit plan with the potential to pay 7.25% annual income. Backed by the Royal Bank of Scotland. Also available as a cash ISA and for ISA transfer.
FTSE 100 Bonus Income Planyes7.50%
per annum
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5 year structured investment plan paying an income of 7.50% annually, including a potential annual bonus of 0.5%. Also available as a monthly income option, Stocks & Shares ISA investment and ISA transfer.
Income Maximiseryes
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Seeks to achieve a target yield of 7% to generate a quarterly income, whilst offering the potential for some long-term capital growth. Save 100% on Initial Charges.
Monthly Income Plus Fundyes
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Popular monthly income fund that aims to achieve a high level of income whilst seeking to maximise total return through investing in high yielding corporate and Government bonds, together with UK equities. 100% discount on initial charges.
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Strategic Bondyes
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Investing in higher yielding assets which will include most types of fixed interest securities, this fund aims to deliver a quarterly income to investors. Save up to 97% on Initial Charges.
Invesco Perpetual Corporate Bond Fundyes
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This highly popular investment fund aims to achieve a high level of overall return with relative security to capital. Income Paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
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Artemis Income Fundyes
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One of the leading UK Equity Income Funds. The Fund managers hunt out companies with strong free cash flow and solid balance sheets. Income is paid to you twice yearly. 100% Discount off the Standard Initial Fund Charge.
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Invesco Perpetual High Income Fundyes
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One of the UK's most popular income funds, the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge.
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M&G Corporate Bond Fundyes
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The M&G Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge.
Jupiter Merlin Income Portfolioyes
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The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Charge.
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The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
If you are looking to supplement your current income, then investing for income is most likely to be by way of a lump sum which can then be invested in those types of assets which provide a natural and, hopefully, increasing, stream of income. Examples of these types of investments could be fixed interest securities, shares with high levels of dividend income, annuities and high interest deposit accounts.

For those planning for the future, investing in a pension is one of the most common methods of investing for future income needs. Initially, the priority will be to maximise the prospects for capital growth until the income is required and the types of investments that could be considered within a pension could be company shares, fixed interest securities, cash deposits and commercial property, to name but a few. Once the income is required, this is most commonly provided by way of an annuity (although there are other options) which will provide you with a guaranteed income for your lifetime.

The most appropriate type of investment will depend upon your own circumstances and requirements, the prevailing economic environment and your attitude to investment risk amongst other things. With all these factors to take into account, it is important that you seek the advice of a professional impartial adviser. The Fairinvestment.co.uk investment service may be able to help you by putting you in touch with an impartial adviser who is able to:-

  • Analyse your circumstances, needs and objectives
  • Look at any existing investments that you may have
  • Prepare fully considered bespoke recommendations based on your circumstances and what you are trying to achieve
  • Access the whole of the market for the most appropriate investment solutions
  • Explain the various options available to you and ensure that you understand them
  • Go through the necessary paperwork and ensure that this is processed as quickly and as smoothly as possible.

Guaranteed Income Bonds
 Product NameIncome RangeMinimum Age 
Aegon Income for Life Bond 3.5% - 5%60More Info >
An offshore income for life bond offering guaranteed income for life of between 3.5% and 5% depending on age.
Metlife Income for Life Bond3.75%-4.75%55More Info >
An income for life bond offering guaranteed income for life of between 3.74% and 4.75% depending on age.
Aegon Secure Income Bond 5%18More Info >
An onshore bond offering a guaranteed income of 5% or your original investment for 20 years

 Important Risk Information:

This website contains information only and does not constitute advice or a personal recommendation in any way whatsoever. The value of investments and income from them can fall as well as rise and you may not get back the full amount invested. The tax efficiency of ISAs is based on current tax law and there is no guarantee that tax rules will stay the same in the future.

Different types of investment carry different levels of risk and may not be suitable for all investors. Please ensure that you read the Important Risk Information for further details. Prior to making any decision to invest, you should ensure that you are familiar with the risks associated with a particular investment and should read the product literature. If you are in any doubt as to the suitability of a particular investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.