Article: Drip, drip, drip ...(On using income drawdown)

A useful tool for retirement planning or a nightmare waiting to happen? Jim Hawkins looks at how to use income drawdown to your advantage

Until 1995 those with personal pension plans only had one alternative on retirement - to buy an annuity, which guaranteed an income for life. Not a very inspiring option.

However, low annuity rates have forced a change, and since 1995 income drawdown has made its way onto the pension shop shelf.

An income drawdown investment is a pension arrangement that you can make use of between the ages of 50 and 75. It allows you to take your maximum tax-free cash at the outset and defer your annuity purchase until the ...

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