Drawdown is the new default for those taking income from their pension pot so, on the second anniversary of pension freedom, William Burrows lifts the bonnet and takes a look at what is powering the engine
There are many different ways of arranging a drawdown plan. Different levels of income, investment strategies and charging structures all mean it is very hard to compare drawdown plans and begs the question: How can advisers and their clients judge whether a drawdown is good, bad or indifferent? Working out what is happening inside a drawdown plan may be harder than first imagined. In the days before pension freedom, it was good practice to benchmark drawdown against annuities - for instance, over the long term, would drawdown pay out more income than an annuity? This comparison might ha...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes