"The best performing pension could produce more than three times more pension income than the worst performing one. The really bad news is that your pension fund is more likely to be amongst the bad than the good" The Observer
Income Drawdown can last for as short a period as the pension scheme member wishes, but at the longer end of the scale the strategy must often change quite drastically as time progresses: changing attitude to risk, changing priorities (the importance death benefits etc.) and changing investment conditions are just a few of issues which must be reviewed regularly. Interest rates may change, impacting on annuity rates
If annuity rates increase significantly a Drawdown member may decide to ‘cut and run’, using his invested fund to buy a conventional annuity. The level of income withdrawals must also be reviewed to ensure the fund is not being depleted too quickly, for example. How can the overall result of all these factors be considered together?