Getting Acquainted With How Income Drawdown Works
- Author Windsor Thompson
- Published January 1, 2011
- Word count 524
The income drawdown concept that comes as an alternative to annuities has been designed to benefit retired individuals. It is uniquely designed for retirees with larger funds or those with other sources of retirement income and would like to take risk a notch higher. The concept differs slightly with annuities, in that the invested pension fund does not provide a guaranteed income. The pension fund is instead re-invested in a wide array of investment options so that a varying income can be generated in the process.
The income generated from this concept tends to vary considerably every year within the stipulated minimum and maximum limits. The minimum can be as low as zero percent while the maximum can go up to more than a hundred percent. One should however, note that the rates can sometimes differ between a man and a woman.
The facility continues up to the age of seventy five and beyond. The money is transferred to the alternative secured pension. There is also an option whereby one can decide to buy traditional annuities so as to be able to receive regular income once the scheme has been terminated. The best thing about the scheme is that it opens one up to numerous choices where one can invest money through different funds.
There are many benefits that retirees stand to benefit from this scheme. One of them is that one is able to buy annuities at any given time after the realization that the rates have become quite favorable. The invested funds can also be utilized to help one buy the most desired annuity scheme in the market.
Once a growth on investment has been realized on the residual capital, the investor is at liberty to purchase schemes with good returns. Unlike in retirement schemes where nominees are not given the full benefits of the dead investor, this concept ensures that the entire residual fund goes either to the dependant or the nominee.
There are options from which the receiver can choose. One of them is obtaining the lump sum which is subject to tax deductions. The other option is to opt for a monthly withdrawal of income from the same concept. An individual can also opt for the purchase of annuity schemes that have the likelihood of having residual amount.
The income can vary from year to year so long as it remains within the stipulated limits. One can use a drawdown calculator that meets the required standards for the determination of the income that one will be taking home within this period. The withdrawal on the income can be made either on a monthly, quarterly or annual basis either in the form of arrears or advance but this largely depends on the investor's discretion.
It is important though, to note that the above mentioned factors tend to vary depending on the stipulated terms and conditions set by the income drawdown companies. It is thus, a necessity for an investor to thoroughly study the terms and conditions before settling for the scheme. There are numerous financial advisors that one can take advantage of in receiving advice on the most appropriate option.
Retirement Solutions will search the entire income drawdown market to find you the most suitable plan. Our expert advisers will use an income drawdown calculator to find what the maximum income is for your pension fund.
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- “Shadowland: The Tragic Ordeal of Frances Farmer and the Machinery That Broke Her.”
- “Glenn Ford: Hollywood’s Reluctant Heartthrob Who Played by His Own Rules.”
- “From Navy Tough Guy to Hollywood Everyman: The Life and Legacy of Ernest Borgnine.”
- Nancy Meyers-Inspired Kitchen: California Casual with Vintage Carved Door Charm
- Yellowstone-Inspired Ranch Farmhouse Style: Rugged Elegance with Rustic Antique Doors
- Used Master Prime Inspection: 5 Critical Checks to Avoid Refurbished Scams
- Staying Charged: A Guide to Electrolyte Balance for Health and Exercise
- Creating a Profitable Business with PLR Planners and Printables
- How to Spend 48 Hours in Cape Town: A Quick Itinerary
- “Wounds That Time Couldn’t Heal: Watching The Best Years of Our Lives Through the Lens of Memory and Mourning.”
- Understanding an ACL Tear
- Top 5 Funniest Gag Gifts for Your Best Friend
- Why Second Hand Pianos for Sale Are a Smart Investment
- Finding the Right Piano Shop Near Me: A Guide to Second Hand Pianos
- “Mira Sorvino: From Oscar Glory to Hollywood Silence.”
- Ireland Sino Institute Launches 2025 China Internship Program
- “Beyond the Spotlight: The Rise and Fall of Dorothy Dandridge.”
- “Through the Mist of Venice: Revisiting Don’t Look Now and Its Haunting Grip on Grief.”
- The Art of Coaching: Cultivating Growth and Inspiration
- Creating a Holistic Backyard Retreat: Old World Elegance Meets Nature
- Understanding T1 and T2 Transit Documents in EU: Your Complete Guide
- Cryptonews.money: Your Ultimate Guide to Understanding Cryptocurrency
- 15 Basketball Dribbling Games and Passing Drills for Better Ball Handling
- Transdermal Progesterone Cream: Benefits for Hot Flashes and Menopause Symptoms
- Tepezcohuite: The Ancient Skin Health Secret You Need to Know
- Quiet Cars and Busy Calendars: The Overlooked Role of Chauffeurs in Post-July Corporate Travel
- 1031 Exchange
- Breaking Karmic Cycles, Creating a Shiva Altar with Deity Carvings and Sculptures from Mogul Interior
- The Art of Whimsical Carved Wall Art & Eclectic Décor
- “Hellfire and Heresy: Ken Russell’s The Devils and the Fury of Sacred Cinema.”