What is Income Drawdown?
Income Drawdown is the popular way to refer to an unsecured pension. Unlike an annuity, the amount you have accumulated in your pension saving is invested and you can take an income subject to HM Treasury Rules. Many people like the idea of being able to control their pension pot (or a specific part of it) and be able to pass it on to their children or unmarried partners. Owners of family businesses also like the flexibility to take out the 25% cash element and take a higher risk approach to investing the balance, as they have an income from their business. It also gives the flexibility to defer purchasing an annuity until their interest in the business is sold, in the hope that the annuity payouts when they are a few years older will be superior. This is a risk: it cannot be guaranteed. There is a risk that you might get less than you could have got if you had taken the annuity at the outset.
Income drawdown can be used in conjunction with annuity purchases to give a bespoke solution for your retirement objectives.
Income drawdown is higher risk when compared with an annuity purchase as the underlying investments chosen can perform poorly.
Our initial appointment is free of charge – no matter how long it takes. Our annuity search is free if you want to make a comparison with income drawdown. We are happy to meet at your home or office within London or Hertfordshire. It is likely we will be able to visit your home or office in the Home Counties and further afield. If you are further away, or you prefer, we offer meetings by Skype video-conferencing. Taking a little bit of time now can improve your standard of living in retirement quite substantially, especially if you qualify for an Impaired Life Annuity. Call us now to book an appointment to start the process. It is your first step to a better retirement.