Income Drawdown Section Introduction – Pensionfinder
Is Income Drawdown A Viable Option For You?
Income drawdown is as complex as is it flexible so although it does offer pension holders a range of options, it can also be quite confusing. The biggest plus points with this form of investment include growth potential, the fact that it allows you complete control over your pension as well as the option to leave the money to a spouse or beneficiary should you die before the age of 75.
It needs to be noted however that there are also some large minus points. These articles are not designed to make the choice for you but they are written to provide useful information which hopefully will enable you to make an informed decision on what the right choice is for you. Remember, this information is not professional advice. There are numerous different options which are dictated by each individual’s circumstances so it is impossible to definitely state that a certain plan is the right one. Therefore, you must be prepared to visit a financial advisor in order to make the most prudent decision.
The Financial Services Authority (FSA) is the financial regulator in the UK and advises pension holders to seek all the professional advice they can about income drawdown because they believe it to be an exceedingly complex option. Professional advisors are there for people who cannot make a decisive decision regarding their pension.
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How you can get information specifically designed for your circumstances
Along with your home, your pension is the most important investment you will ever make and in some cases will exceed the value of your home. Therefore, when you make a pension income decision it must be the correct one. The most basic choices are annuities which can provide a steady and secure income. Income drawdown on the other hand is neither steady nor secure but it can provide a much higher return on investment.
Here are the basic retirement options: