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Any thoughts
okydoky
Posts: 267 Forumite
At age 56 I can buy an anuuity of £8100 for about £160K, but taking the drawdown route I need £180K for income at this level.
Given the the annuity is guaranteed, are there really considerable advantages in drawdown bearing in mind the uncertainties?
Is my approach too simplistic - any views?
Given the the annuity is guaranteed, are there really considerable advantages in drawdown bearing in mind the uncertainties?
Is my approach too simplistic - any views?
0
Comments
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yes, what type of annuity? Level? Or increasing by an index? Suvivors benefits?
If you go level, the value of that annuity will plunge each year by the rate of inflation and will have seriously eroded after a decade or two. So a drawdown can (if the underlying assets increase) help you keep up with inflation. And can be left 100% to a spouse whereas, if you dont' apy extra your annuity dies with you.0
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