Ask The Experts - Risks of Income Drawdown

clock

Question: Surely far too much risk at the moment for my captious investors to ply their funds into Income Drawdown…. Historically, in my opinion, over the long term equity investment has managed to produce the required levels of returns, however, the increasingly poor stock market conditions and low returns in other sectors have indicated that it could be difficult to achieve a good level of growth in the future. So, what does the future say about Income Drawdown? Will 6th April be a major changing point?

Answers: Fiona Tait - Scottish Life You make a good point about long term returns. It is often thought, with good reason, that income drawdown is a short term contract and should therefore carry less investment risk than a pre-retirement plan. This is of course true in many cases, as the client requires ongoing access to their benefits, specifically income. However as I think I have mentioned in a previous reply, Scottish life are finding that a very significant proportion of our income drawdown clients are not in fact taking any income after accessing PCLS. Younger clients who hav...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on uncategorised

Building Society-owned Newcastle Financial Advisers acquires Openwork firm

First of a number of acquisitions

Hannah Godfrey
clock 09 December 2019 • 1 min read

Bond managers fear hedges being undermined as liquidity dries up

The recent sell off in the bond market and growing liquidity issues have forced bond investors to use similar hedging techniques, undermining their effectiveness and causing concerns about how much downside protection funds really have.

Anna Fedorova
clock 03 July 2013 •

Police launch investigation into mortgage middleman fined £1m

West Midlands Police have launched a fraud investigation into a Birmingham financier over his role in sale and rent back agreements.

clock 25 June 2013 •