Guaranteed Drawdown
Guaranteed drawdown provides you with a flexible retirement solution, offering you the security of a either a guaranteed lifetime income, or a guaranteed future fund value.
Retirement income
- Guaranteed drawdown provides you with flexibility with your retirement planning.
- You’re not tied into an annuity rate that is fixed for the rest of your life.
- You can receive a guaranteed lifetime income, regardless of investment returns.
- You can protect yourself against falling investment returns or stockmarket fluctuations.
- You can defer the purchase of annuity, whilst still receiving a retirement income.
Guaranteed drawdown allows you to retain control of your pension fund. There is an investment lock-in, whereby any gains can be secured. In addition, if the fund increases in value, the level of your retirement income will increase, but if the fund value falls then your income will remain at the level at the last lock in.
This table shows some of your choices when comparing a conventional lifetime annuity to guaranteed drawdown.
| Your Choices | Conventional Annuity | Guaranteed Drawdown |
| Can you take a tax free cash lump sum? | Yes | Yes |
| Will you get a secure income for the rest of your life? | Yes | Yes |
| Can you protect your future pension fund value? | No | Yes |
| Are you tied into an annuity rate for life? | Yes | No |
| Can you vary the amount of income you take? | No | Yes |
| Can your income rise with good investment performance? | No | Yes |
| Can you provide for someone else after you die? | Yes | Yes |
Why guaranteed drawdown?
As guaranteed drawdown can include a number of features including consolidation and income options it could suit you either at an early stage of your retirement planning or when you come to retire. For example:
- If you are at the age where you have built up significant pension funds and wish to protect those funds against future market falls.
- If you are approaching your retirement and don’t want to take chances with your pension fund or their future income.
- If you are retiring and want the flexibility that income drawdown can provide but with the certainty of a fixed annuity.
- If you have taken an income drawdown product but wish to protect yourself against future market falls and the impact this would have on your ongoing retirement income.
To find out if guaranteed drawdown might be right for you, request a free quote or call free on 0800 0124 374.
Death benefits
On death, you have the same options as conventional income drawdown.
