Income Drawdown:

A facility that allows a delay in buying an annuity if rates are low when retirement age is reached.

Drawdown allows the purchase of an annuity to be postponed until a maximum age of 77, giving an income directly from the pension fund in the meantime.

This type of pension income is not suitable for everyone and you need to obtain advice before making a decision as future income is dependent on fund performance and there are no guarantees as fund value can go down as well as up. Taking benefits early including the tax free cash can reduce the income available in retirement and there is a danger of running out of funds. Therefore, drawdown may not be suitable for everyone.

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