Income Drawdown is the name given to the facility that enables you to continue to keep your retirement savings invested and take an income each year rather than buying an annuity. You decide when to purchase your pension, enabling you to time this for when annuity rates are at their most favourable.
Income Drawdown enables you to retain investment choice and control. If investment growth is achieved on the residual funds, combined with rising annuity rates that increase with age, a higher pension may also be purchased than would otherwise have been secured from the outset.
When considering Income Drawdown, you should seek professional advice. This is a complex area of retirement planning and there is no income guarantee. Regular reviews are required and the process can be expensive and may not be cost-effective for smaller funds.
High income withdrawals combined with poor investment performance could also reduce the fund and income, or deplete it altogether...
"Keeping track of your pension portfolio
to get the best out of the contributions
CFS Independent Financial Advisers
Lower Blyth Suite, Kirkley Hall,
Ponteland, Newcastle upon Tyne NE20 0AQ
Telephone: 01661 821110
Fax: 01661 824296
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