UK Pension Funds - Guaranteed Drawback Plan - Page 2
You must understand that a Guaranteed Drawdown Plan has the effect that its fund value will go up or down. If the fund value of your investment goes up, your cash pension release will not be capped. In the same manner, if your fund value falls, your cash from pension will not fall with it. This is what separates an Income Guaranteed Drawdown Plan apart from the rest. The idea can be difficult to comprehend and that is why it is important to discuss this with your financial adviser.
Another thing you can consider is deciding whether or not this type of retirement plan is good for you. If you are the type of person who wants an unlimited guaranteed income from pension throughout your life or someone who wants a fixed level of cash in pension income from the beginning instead of a varying kind, then annuity is the best choice to have. A Guaranteed Drawback Plan does not give you a low risk option unlike all the other retirement plans in the industry.
Investors are given a lot of investment products to choose from. Compare annuity quotes from the guarantee of getting flexibility and income pension plus the the capability of changing income levels or of taking control over investment options as well as the benefits derived from them.