Disheartened by drawdown

Since their introduction in 1995, drawdown pension plans have been widely regarded as an alternative to the traditional lifetime annuity. Many welcomed the option to unlock tax-free cash without taking out an annuity while others were attracted to retaining ownership of the funds and the flexibility of the policy with regards income levels and lump sum death benefits. Arguably, sales of drawdown plans peaked in 2007, which coincided with the FTSE 100 Index hitting a high of 6,730 during June 2007. Five years on and Summer 2012 will see many clients approaching their fifth anniversary and...