Guaranteed Income Drawdown - income version
It is even possible to just take the tax-free cash and delay the income. This has the effect of providing a bigger, guaranteed income at a later date.
This offers a "real halfway house". It does offer a guaranteed income, yet allows the fund to stay invested, so have the flexibility of income drawdown.
Death benefits for this type of contract can follow normal drawdown options or a continuing guaranteed income for a spouse, depending on what you select. Contact us to find out more.
In a nutshell, a temporary annuity can provide you with a lump sum and an income. You select the term and at maturity, it provides a known (lower) figure in return. This money is then used to buy another temporary annuity, conventional annuity, or drawdown. In some ways, it is similar to a drawdown contract, but has less investment risk, since you know at the outset what your "fund" will be worth.
- It defers annuity purchase
- Provides a guaranteed (temporary) income
- Provides a known return
- If health deteriorates then a future annuity could pay more
- It can be combined with "value protection" to provide lump sum death benefits
- This offers some flexibility and removes the investment risk, as you know what the fund will be. However, you still run the interest rate/annuity rate risk
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If you can't find the information you're looking for on the website, or you want to know more or have a question, or just want to chat through some details about your pension then please feel free to contact us, without obligation. Either contact us online or call 0800 011 2713.