What is Meant by Pension Drawdown?
Some pension schemes - notably self-invested personal pensions, executive pension plans and small self-administered pension schemes - allow a contributing member aged between 50 and 75 to leave their pension savings invested in the fund and to take out a regular income rather than buy an annuity This is known as pension drawdown or pension income drawdown
The advantages
The main reasons for taking a pension drawdown are twofold: if annuity rates are low, then the fund-holder can delay buying an annuity, since the older you are when making that purchase the more attractive a rate of return will be offered; and, if the pension investments remaining in the fund are performing well and are expected to continue to so into the future, then the ...
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A new wave of investing coined 'ISA Trend Investing' is proving its worth as investors across the country are finding their portfolios have surged by as much as 40% during the past six months, whilst the FTSE 100 gained just 5.9% and the Nasdaq Composite a mere 2.7% over the same period.
The Attractions of a Self-invested Pension
One of the reasons for searching out the services of an independent financial adviser is that pension matters are awash with esoteric terms, labels and descriptions The self-invested pension - or Self-invested Personal Pension (Sipp) as you'll often see it called - is a good case in point