Making the right choice

Income drawdown originated in 1995. Since then, many ­advisers have used it to good effect. Although it is not without risk, there are many clients who have, over the years, appreciated the flexibility, investment options and death benefits it provides. Since its introduction, additional guidance has been published to help advisers to establish ­suitability. The Regulatory Update 55 (RU55) - published in August 1998 - was a key part of this guidance, as it helped advisers to calculate critical yields. RU67 subsequently ­reinforced the importance of giving specific risk warnings: Hig...