Need for Education
While more than half of the U.S. investors surveyed understand the importance of earning income, they aren’t certain how to get it. Alongside salaries, the top sources of income expected over the next year include savings, investments and property.
However, while 58% agree that earning an investment income is important, only 23% currently earn or draw an income. The growing need to generate investment income is widely acknowledged by investors surveyed, particularly as older investors look to replace income from paid employment once they enter retirement.
Investors are beginning to understand that they can no longer expect inflation-beating returns from the traditional sources, and although many are still "parked" in traditional sources like cash and government bonds, there is a growing sense that they may need to change this approach.