Moving from accumulating a pension fund to withdrawing it through unsecured pension (income drawdo...
Moving from accumulating a pension fund to withdrawing it through unsecured pension (income drawdown) presents new issues for advisers and clients. The aim is no longer just to build up as large a fund as possible at an acceptable level of risk, but to manage investments while taking income, and probably with one eye on eventual annuity purchase. Because of the higher costs and the loss of the mortality cross-subsidy inherent in annuity (mortality drag), the return achieved from unsecured pension needs to be quite high if lifetime income is to match what could be obtained from an annuit...
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