THE Investment Management Association (IMA) has released research demonstrating how non-annuity investment products can provide a lifetime income for retirement.
It modeled eight different drawdown strategies that could be used as alternatives to conventional annuities. It found that it is possible to have a withdrawal strategy that delivers higher returns, while avoiding the risk of running out of money in retirement. The combination of lifetime income and bequest under the alternative strategies delivered up to 20pc more than conventional annuities, while a combination of annuities and drawdown was found to be the best option for many people. The trade body is calling on the Government to offer a wider choice to consumers aiming to maximize ...
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