Services Of Pension Drawdown Company

By Author: Russel Mori
Total Articles: 36
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A pension drawdown company provides services and suggestions related to management of pension funds and properly investing it to generate maximum returns. Pension drawdown company normally has a team of expert financial advisers and managers who are proficient in understanding and comprehending the specified requirements of the client related to pension fund, and then provide the best available schemes and offers which can assure maximum profit. The following are the few of the main services which are provided by a pension drawdown company:

(a) Capped Drawdown: Capped drawdown pension scheme is mainly a variant of the unsecured income drawdown plan or commonly called as pension drawdown plan. In the capped drawdown plan, there are various features and plans which have been modified so as to produce a better result oriented return scheme for the investor.

The fundamentals behind the capped drawdown plan is the same: the pensioner does not buy out annuity but choose to invest in unsecured pension schemes wherein a fixed percentage of the pension is ...
... invested in various portfolios. A person who wish to invest in capped drawdown must be 55 years or older. Once the investment has been made, the lump sum amount can be withdrawn as tax free. This feature is one of the most attractive pointers of capped drawdown plan.

Though capped drawdown pension plan sounds nice as a good alternative to buying out annuity, there are several disadvantages as well. The annuity rates can anytime go up or go down, depending on the prevailing market rates. This can prove to be major factor of dissatisfaction at later stage, when a pensioner wishes to sell annuity. Such conditions needs to be properly acknowledged prior to making decision to invest in capped drawdown. Additionally, the contract regarding the capped drawdown can also fall in value in turbulent times.

(b) Alternatively Secured Pension: Alternatively Secured Plan or ASP is another version of income drawdown plan, which have been discontinued since April 6, 2011. All existing alternatively secured pension plan holders had to be converted into a income drawdown plan or buy out annuity, post April 6, 2011. However, the compulsion that a pension holder has to buy out annuity by the age of 75 years has been recommended to be abolished.

In alternatively secured pension, the pensioner or the investor needs to withdraw a minimum of 55% as an income from the actual funds invested. However, as alternatively secured pension is now discontinued, this particular rule has also been abolished.

Besides these services, there are several more services which are provided by a pension drawdown company. You can log into GerardAssociates.co.uk to know more about the plans and features of pension drawdown schemes.