People approaching retirement should seek professional advice on how to drawdown their pension as they are likely to take a double hit from lower gilt yields and falling fund values.
Skandia says well planned pension fund withdrawal could increase the income a pensioner can take by more than 6% in the future. Gilt yields, which are used to calculate income withdrawal contracts, are now at just 3.75%, Skandia says, their lowest since income withdrawal was introduced in 1995. Pension funds have also been hit by falling investment markets, leaving many people worse off in retirement. Skandia says advisers can help their clients increase their retirement income by keeping some pension money out of income withdrawal. A number of pension schemes offer 'additional desi...
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