Income Drawdown

Income Drawdown

In the world of defined contributions pensions, an income drawdown or income withdrawal is an option available to pensioners, where they leave some of their pension fund invested and take a portion as income. The drawdown can be from the pension fund as a way of creating income. A benefit of doing this is it allows the pension fund to continue growing, although this does create the risk of poor fund performance. Fund holders can also draw down cash to purchase annuities that create income.

logo-animationlogo-animationlogo-animation

Related terms