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Article: ANNUITY ALTERNATIVE Income drawdown pension schemes can have big pluses - but they can also contain major pitfalls, writes Helen Pow
- Article from:
- The Sunday Telegraph London
- Article date:
- August 23, 2009
- Author:
CopyrightCopyright 2009 The Sunday Telegraph London. Provided by ProQuest LLC. (Hide copyright information)
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Older people enjoy greater freedom than ever about how they draw
benefits from their savings - but they must beware the risks, as
well as potential rewards, of income drawdown schemes.
Britain has experienced unprecedented stockmarket turbulence in
recent years - and the value of many income drawdown investors'
pension pots has plunged.
That is bad enough but those who continue to take high
withdrawals could see up to 80pc of their pension savings wiped out
within just six years, according to financial adviser Hargreaves
Lansdown. This is based on an investor with a pounds 250,000
pension pot who took an income of pounds 21,600 each year from 2000-
2006 despite falling markets. However, ...