Two weeks ago we talked about securing an income in retirement. Today I’m going to look in-depth at unsecured income, or what ordinary people call Income Drawdown.
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The difference between secured and unsecured drawdown is essentially about who takes the risk. With a secured income you have someone else guaranteeing to provide you with the specified income, and it is up to them to do whatever is necessary to meet their obligations.
With unsecured income drawdown, you are in control, and on your own head be it. If you run out of money, too bad. If you still have too much money left when you die, then you haven’t spent enough! The investment risk, the withdrawal rate, the asset mix, is all down to you. So this week I want to look at the mechanics of income drawdown, and then next week, I’m bringing back friend of the show Abraham Okusanya to give us a steer as to how to withdraw money and how to invest for retirement.
In this session you will learn:
- That Income Drawdown is not just about pensions
- Why the Pensions Freedoms of 2015 are so important
- How income tax works in pension drawdown
- Why death benefits should always be front of mind when planning your drawdown strategy
- Why it is worth checking ahead of time whether your own pensions are flexible
- Why consolidation of your pensions makes life easier
- And why you should be very careful doing so
- Why you should check your expression of wishes on your pensions
As always there is a transcript available for the entire show. you can get it by clicking the huge blue button below:
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