Gambling in retirement
Article Abstract:
United Kingdom annuity rates have dropped to low levels and investors may consider income drawdown plans as a solution to avoid being locked into a low annuity level. Income drawdown plans were launched in 1995 and allow investors to defer their annuity purchase while drawing an income, until they are 75-years-old. Income drawdown offers greater flexibility and allows dependants to keep the whole of the pension fund, while nothing is left if an annuitant dies unless it is a particular type that continues to pay dependants. Annuities may be better suited for older people, and they offer greater security than income drawdown plans.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1997
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Facing the future
Article Abstract:
Demand for annuities in the United Kingdom is likely to rise as stakeholders pensions are introduced and companies move to money purchase schemes and away from final salary schemes. Guaranteed annuities based on interest rates have become more expensive, so equity-based annnuities offering greater flexibility, may be a good alternative. South African financial services companies offer such deals, and allow the annuitant to retain the capital for the life annuities in their estates. UK annuitants would benefit from such schemes.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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Income drawdown - a snip at 25,000 pounds sterling
Article Abstract:
United Kingdom income drawdown schemes offer investors greater flexibility than conventional annuities. They allow investors to keep their funds invested while drawing an income. There are problems such as high commission payments to financial advisers, and investments that may be inappropriate in that they do not produce high enough returns. Income drawdown plans are more suited to certain types of investors, such as those who are relatively young and well-off.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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