ARTICLE · 12 JANUARY 2012

Top Ten Tips For Pension Drawdown

Smith & Williamson

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Pension drawdown – taking a regular income from your pension savings without buying an annuity – has become very popular in recent years.

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Smith & Williamson

Getting the best from your scheme

Pension drawdown – taking a regular income from your pension savings without buying an annuity – has become very popular in recent years.

Drawdown schemes can offer valuable flexibility. But investors need to be careful about the amount they draw because the size of the overall pension fund may decline, depending on how the monies are invested. In other words, you may get the same monthly income, but the return on your investments and the size of your capital fund may fall substantially. As a result, the capital remaining to generate future income could be depleted earlier than anticipated.

Here are ten things to consider if you have a pension drawdown arrangement.

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