Alternatives to income drawdown
FREE guide to
Your options at retirement
Explore your options, the pros and cons, the benefits of the new 2011 retirement rules, and discover how you could maximise your pension fund when you retire.
Deciding how to take your pension benefits is one of the most important financial decisions you will have to make.
Below is a snapshot of information about the alternatives to income drawdown, however for more information on the pros and cons of each option please request our FREE guide to Your options at retirement.
If you are at all uncertain about your options we suggest you seek advice. Please don't hesitate to contact our friendly support team on 0117 980 9926, who can answer your questions or put you in touch with one of our financial practitioners.
Conventional lifetime annuities
A conventional lifetime annuity is the simplest retirement option and provides you with a secure, taxable income which is payable for the rest of your life.
Once it has been set up it cannot normally be changed, and cannot be affected by stock market fluctuations or interest rate changes, so you can rest safe in the knowledge that your annuity income will never run out. Find out more about annuities
View a comparison of income drawdown versus annuities
Investment linked annuities
Investment linked annuities are designed to give you the opportunity to obtain an income that increases during your retirement, but the income is not fixed.
Unlike conventional annuities, they are linked to an investment within the annuity provider’s range so they contain an element of investment risk.
Your future income could increase if the fund grows – but conversely, if the fund value falls, your income could decrease. As most investment linked annuities are linked to with profits we believe many clients are likely to be better off splitting their funds between a conventional annuity and income drawdown
Fixed term annuities
Fixed term annuities are relatively new and share some of the characteristics of both lifetime annuities and income drawdown. They pay a regular income for a limited number of years, selected from the outset.
At the end of the fixed term the investor has a lump sum available within the pension plan to reinvest for more income. In that respect fixed term annuities are more similar to income drawdown. They offer the opportunity to review the choices you have made, but there are big risks involved.
In our view, fixed term annuities will not be the answer for most people. We believe most clients who want a mixture of annuity and drawdown benefits are likely to be better off taking a DIY approach by splitting their fund simply between an annuity and income drawdown.
Get a FREE
income drawdown
illustration
- Discover how much income you could receive each month
- How withdrawals and charges will affect your income
- How investment performance can change your fund value
Important information
Some of these options are complex and income is not guaranteed. If you are at all uncertain about their suitability for you then you should seek advice. Annuity rates can change regularly and may go up or down in the future. Quotes are guaranteed for a limited time. Once set up, a lifetime annuity cannot normally be changed or cancelled so it is important to consider your options carefully.
Client review
Having contacted a different annuity broker initially, I found Hargreaves Lansdown to be far superior. I am very pleased I trusted them in setting up my annuity.
Mr Johnson, Chelmsford
Have a question about income drawdown?
If you have a question or would like more information call one of our specialists on:
0117 980 9926
Mon - Thu: 8am - 7pm
Fri: 8am - 6pm
Sat: 9:30am - 12:30pm
