This document discusses strategies for generating retirement income. It begins by outlining the basic components of a household's finances: capital that is invested to produce income, which then pays expenses. Any surplus income is reinvested. It then shows how inflation erodes the purchasing power of fixed income investments like bank deposits over time. The document advocates diversifying across asset classes like cash, bonds, property and equities to balance income generation and risk of capital loss. Examples are given showing the different income and growth profiles of various investments over a 15-year period. The conclusion emphasizes that dividends from share investments have consistently outpaced inflation.