Advantages of Income Drawdown (USP)
Income Drawdown is an option for people aged between 50 (55 from 2010) and 75.
Income Drawdown is an alternative to buying an annuity. It gives you control over the timing and level of income taken from your fund (within HMRC limits) whilst leaving the remainder of the fund invested.
One of the benefits of Income Drawdown is that you can take all or part of your tax free cash, without having to take any income at all.
You can also take your retirement benefits in stages to give you the flexibility to alter income levels during retirement as required.
Although Income Drawdown 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.