Income Drawdown- “Secure Your Old Age With The Unsecured Pension”

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<h1>Income Drawdown- “Secure Your Old Age With The Unsecured Pension”</h1><strong> Author: <a href='http://www.articleseen.com/profile_Kevin Stelfox.aspx'>Kevin Stelfox</a></strong><br /><p>Income drawdown can also be termed as unsecured pension. This is a facility by which you can carry on keeping your retirement savings invested, and at the same time you can take an income each year rather than buying an annuity. Annuity is a policy which gives you an income after your retirement. Your residual amount will be invested in this arrangement of income drawdown. You can buy this facility till you are 75 years old not after that. When you reach 75 you have to buy an annuity or you can transfer your money into an alternatively secured pension. The amount or income that can be drawn from this scheme differs from year to year between a maximum and a minimum. The minimum can be 0 and the maximum is 120% of a pension calculated through tables provided by the governmental department of actuaries. These tables are based on the amount your money can buy as an annuity. It is based on your life only and you can’t increase the amount in the future. The maximum amount is recalculated after every five years. There are certain advantages you can enjoy from this kind of arrangement. You can choose to buy the pension when the annuity rate is up to your liking. If growth is achieved from the invested residual fund and if the annuity price increases with your age you can buy a higher pension than the one you had bought in the beginning. Your residual fund will be returned after your death under this kind of pension which many other companies do not. You cannot contribute to your income drawdown If you die before the age of 75 your dependent or your wife will have three different option of getting back the money. They can take back a lump sum amount of the money which is taxable in the tune of 35%. They can continue with the income withdrawal or else can buy an annuity. A dependent’s pension can be delayed to a later date depending upon terms, rules of the policy. The income obtained from the fund may get reduced if the investment growth on the residual money is not good. Though the level drained is monitored yearly. You don’t have the guarantee that you will get more money ultimately than the amount you had invested in the beginning. The fund needed is in the tune of $100, 000 before you can start withdrawing your pension. This may look a bit heavy amount but you have to meet up the administrator’s charge, you may have to part with investment management fees. You can transfer your assets in this arrangement from other plans or stakeholder schemes provided all terms and conditions are fulfilled. On the basis of the points discussed it should be crystal clear to you that advantages in this kind of arrangement are more as compared to the disadvantages. You can definitely think of investing your money in this scheme to secure a better future.</p><strong>About the Author:</strong><br />Based in the UK, Retirement Solutions are Independent Financial Advisers (IFA) that give specialist advice on <a rel="nofollow" href="http://www.incomedrawdown.org.uk" >Income Drawdown</a> and calculate the maximum allowable GAD income using an <a rel="nofollow" href="http://www.incomedrawdowncalculator.co.uk" >Income Drawdown Calculator</a> - For Specialist Income Drawdown Advice call 0800 043 6701<p> Article Source: <a href='http://www.articleseen.com/Article_Income-Drawdown“Secure-Your-Old-Age-With-The-Unsecured-Pension”_23026.aspx'> http://www.articleseen.com/Article_Income Drawdown- “Secure Your Old Age With The Unsecured Pension”_23026.aspx</a></p>

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Keywords : income drawdown, income drawdown calculator,

Category : Finance : Investing