Article: The drawdown dilemma; Will it pay investors to switch providers?

Byline: MATT KOVAC

INCOME drawdown investors with cash invested in poor-performing funds have been given the chance to switch providers under new rules issued by the Inland Revenue.

Drawdown is used by people who want to take an income from their pension fund but are keen to avoid purchasing an annuity. It allows your pension to remain invested in the stock market and you to withdraw an annual income each year.

But thousands of investors have been plagued by bad administration or disappointed with fund growth.

They will now be able to transfer their savings.

Previous regulations meant that once an investor entered into drawdown with an insurance company, ...

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