Called a Pension Fund Withdrawal or Income Drawdown. Instead of purchasing an annuity on retirement, the investor leaves the pension pot that has built up invested in the tax favourable environment of the fund, where it could grow even further, and takes an income directly from the pot. The residual in the pot can be used to buy an annuity at any time.

At age 75 an annuity has to be purchased or this type of arrangement can be continued in the form of an Alternative Secured Pension (ASP). These operate similarly to USP, with only a few minor differences, and again the purchaser can convert to an annuity at any time.

How you decide upon an income will require an in depth understanding of your personal circumstances and need a critical assessment of such factors as investment growth, mortality rates and mortality drag, cross-subsidisation and withdrawal levels.

Therefore to have one of our Retirement Income Consultants help you with this very difficult and complex decision ring on 0845-6756749 or clicking here now.