Opportunities within income schemes

With only 5% of retirees currently in income withdrawal schemes, this underused area of pension plan...

With only 5% of retirees currently in income withdrawal schemes, this underused area of pension planning creates a big advisory opportunity, according to Friends Provident. As the majority of a pension fund in a withdrawal scheme, less initial tax-free cash and ongoing withdrawals, will remain invested for as long as 25 further years, clients can gain from ongoing exposure to the stock market through their chosen investment vehicle. Set out in the 1995 Pensions Act, the main principle of personal pension income withdrawal is that an income is taken directly from the pension fund, in pl...