Have You Looked at Income Drawdown Option?

incomeGetting old is a part of life and spending this wise and mature phase of life peacefully is what everybody strives for.

Annuities are one option to make ends meet when you are no longer employed. Amongst many other options of securing cash is income drawdown.

Income drawdown is an option that requires you to leave your pension funds invested in bonds, shares and other items. This option also entails drawing a regular amount of income from these options by cashing in some of those savings. People may not realise but it is a high stake option than locking into an annuity for the reason that your money stays in places that possess the chance of going up and down, but may offer more incentive.

Some experts believe that income drawdown enables you to profit from any future stock market growth and you can easily manage your cash flow because you only draw income when the need arises. As many experts suggest, people having large pension savings benefit more from income drawdown than people who have not saved much. The investment risks are high with this option but big pension pot holders can safely survive the unpredictable stock market conditions.

If the stock market runs in favourable condition then the chances of income rising could increase; similarly, your income could fall if stock market performs bad due to tough time. This is a risky option but the benefits could make it worth a try.money

Do not get into thinking that you know everything about income drawdown by only reading one post and can choose it as an option on your own. You would definitely need the advice of the annuity specialist or a recognised pension adviser. Be wise in your decision and don’t rush. Remember, you spent years trying to accumulate all of your pension fund and doing some research to find out what to do with it should also be paid due attention to.




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