An Income Drawdown Fund lets you deposit a lump sum or multiple amounts with an insurance company, then withdraw regular income on your terms while the rest of your money stays invested and growing.
Income draw down
What it is
An Income Drawdown Fund is a retirement plan where you deposit a lump sum (one-time payment) or multiple deposits with an insurance company and then withdraw a regular income.
Unlike an annuity, which pays a fixed amount for life or a set period, you choose how and when you receive your income. Meanwhile, the remaining balance continues to grow through investments.
Benefits
- Tax benefits: Moving your retirement savings into a drawdown plan is tax-free. Taking your retirement funds as a lump sum is not an offered benefit.
- Grow your money: Your fund earns a guaranteed minimum interest of 4% per year, plus a bonus interest (typically 4%–8% annually) based on market performance.
- Flexibility: You can switch to an annuity at any point to secure a guaranteed income, even before the 10-year minimum period.
- Capital safety: Your initial investment is secure, earning guaranteed interest—your money cannot be lost.
- Professional management: Your fund is managed by expert insurance and investment professionals.
- Leave a legacy: If you pass away, your fund can provide income to your beneficiaries through continued drawdown, annuity purchase, or a lump-sum payment.
Request a quote for an income drawdown arrangement and we will help you structure deposits and income withdrawals.
