Question: Surely far too much risk at the moment for my captious investors to ply their funds into Income Drawdown…. Historically, in my opinion, over the long term equity investment has managed to produce the required levels of returns, however, the increasingly poor stock market conditions and low returns in other sectors have indicated that it could be difficult to achieve a good level of growth in the future. So, what does the future say about Income Drawdown? Will 6th April be a major changing point?
Answers: Fiona Tait - Scottish Life You make a good point about long term returns. It is often thought, with good reason, that income drawdown is a short term contract and should therefore carry less investment risk than a pre-retirement plan. This is of course true in many cases, as the client requires ongoing access to their benefits, specifically income. However as I think I have mentioned in a previous reply, Scottish life are finding that a very significant proportion of our income drawdown clients are not in fact taking any income after accessing PCLS. Younger clients who hav...
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