Advantages of Alternatively Secured Pension (ASP)
ASP is an option at age 75+ for people in Income Drawdown who wish to defer purchasing an annuity.
Like Income Drawdown, it allows you to keep control over the timing and level of income taken from your fund (within HMRC limits) whilst leaving the remainder of your fund invested. ASP offers some flexibility as income can be varied between 55% and 90% of HMRC maximum.
Although ASP has the potential to offer higher returns than an annuity by leaving funds invested, it does carry some risk because the value of your fund can go down as well as up.