UK Pension Funds - Guaranteed Drawback Plan
At each time in every person's life, the idea of early pension planning or getting a pension early might have come across at one point or another. With over 50 pension advice companies in this kind of industry today, specialists agree that securing your future is one of the bests financial actions you will ever have.
Over the years, many investment professionals have been coming up with different kinds of investment products to suit every person's preferences. One of these new products are the so called Guaranteed Drawdown Plan.
A Guaranteed Drawdown Plan is a kind of annuity that has a drawdown feature. This means that you have an unsecured pension while at the same time have a secure cash from pension that is basically based on an annuity. In short, you are assured of a certain type of guarantee. Another way to explain this type of annuity is that you can get some cash in pension from your existing pension fund while it is still invested. In spite of this, the interest in this pension fund continuous to grow. Compare annuity quotes and you will see that different providers will require a minimum amount to start up a fund like this and being able to withdraw income from this fund requires a high fund value.
There are a lot of factors that help people determine if a certain retirement plan is good for them. If you are in search for one that has very flexible options or one that allows you to receive income from pension while at the same time securing a part of your pension fund for investment growth, a Guaranteed Drawdown Plan is good for you. This is also a good choice to have if you want varying terms with your retirement income every year such as determining when will you be receiving it or in what form and in what manner you will receive it. Some Guaranteed Drawdown Plan products also allow you to choose your own investment funds from where you will place your pension fund.Continued on the next page