At retirement the time horizon to be catered for could be 30+ years.

So by using both capital and interest one could secure the first 3 to 5 years required cash flow by using Term Deposits within the Retirement Fund maturing in 1, 2, 3 and/or 4 and 5 years.

The balance of Retirement Funds being invested in growth investment sectors.

Then as the first years term deposit matures use both the capital and interest to fund the next years required cash flow.

Then from the balance of the Retirement Fund account set up another Term Deposit maturing in 3 or 5 years As the case may be so that you always have a term deposit maturing each and every year.

This sort of thought process has worked since the late 1980s and thereafter to the present day.

However, some rather arrogant Retirement Fund managers do not facilitate that the maturing Term Deposit is to be used to provide the next years income thus putting an additional personal member handling step in the whole process.