But it would be a mistake to think this reduction applied right across the board for retirement income products. Instead, the maximum income for flexible annuities remains at 120%. The reduction to 100% was made amidst growing concerns that income drawdown clients who were taking the maximum income could run out of funds and end up relying upon the State for additional income. But there was no need to make a similar change for flexible annuities.
Clients don’t run the same risks of fund depletion because the two product types are fundamentally different.
Income drawdown permit you to draw an income directly from your pension, although it is leaving the remainder invested. It is help the customers contracts and manage their pension affairs in a way that best suit them. Thanks for this excellent post. It will really help a lot of people.
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