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Ray Chinn, LV= Head of Pensions and Investments said: "For the majority of people, retirement is no longer an absolute event whereby they hit 65 and leave the workplace forever. It's become a phased event and income drawdown fits very neatly into that space. “Indeed, one of the reasons clients use income drawdown is because it allows them to turn the ‘income tap’ on and off. For those clients that continue to work this is extremely useful as it means that they can access their fund, but can drip feed the income so they don't end up in a higher tax bracket. “In January, a 65 year income drawdown client with a £100k fund will be able to take £7,320, rather than £7,080, from their fund. “An income drawdown product could provide many with the flexibility they require and we would encourage people to seek advice and consider all the options available, in order to maximise their income in retirement.” |
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