May 11 2016
Flexible Pension Drawdown
Secured income with flexible pension drawdown
A recent study showed that people would like to use their immediate savings in the form of pension while they are working itself. They do not want to wait until they are retired to access their pension fund. But is this possible? With the help of the flexible pension drawdown, you can now easily draw up to 25 percent of your pension fund and use it for different investments. This will help you to generate income as well that you can either fix or use on the go. There are many benefits of the same.
Flexible pension drawdown as a source of income
In today’s work, the value of money has increased a lot. We cannot say that the value of Rs. 100 is the same as it was some years back. The most household is now requiring more than one source of income in order to sustain well in this expensive world. But the sad truth is that it is quite difficult to generate new 
sources of income. So investing has become a very lucrative thing at the moment. You will see that more and more people are using investments to generate a source of income. Flexible pension drawdown too is a very good way to generate income.
Flexible pension drawdown for investments
We have already discussed that investments are a very good option to generate income. But even investments require capital. So how can you get extra capital? You can get it through the flexible pension drawdown plan. You can withdraw till around 25 percent of your pension savings in aparticular month and use that to make investments. You can use the income generated from the investments immediately or at a later on adate based on your requirements.
Flexible penion drawdown for future investments
Mr. X wants to help his son with his university fees in around 10 years. But saving from his own income is quite difficult for him due to the present expenses of his family. So can he not help his son in the future? He sure can now, with the help of flexible pension drawdown. He can now use flexible pension drawdown to draw lump sums from his pension and use it to fix an investment for the future. This will help him to attain his goal without having to sacrifice much in the present. This scheme is great for all those who wish to secure some earnings for the future generations without having to part with nay present day income.
In today’s world money is losing its worth. You can easily see that you are hardly having any proper savings at the end of the month. 
This means that you ill hardly get any proper investments for yourself to look back in the future. But with the help of the flexible pension drawdown plan, you can now easily use your pension money to make good investments. You will thus be able to create income for yourself from your future day pension in the present date itself.
May 11 2016
Pension Rollover Rules
How does the pension rollover rules favor annuity?
During a period of laid off or when retirement comes closer to you, you may have the choice of taking the money in whicheverway you want. It may be a lump sum distribution from a retirement plan or according to pension rollover rules.It may be amounting into an individual retirement account. You will also be offered the option of taking the money in the form of an annuity by some companies. That annuity will be guaranteed for a lifetime. The options are usually spelled out for you in the document of the plan. This is a big decision which may or may not be according to pension rollover rules.It should not be taken lightly, and it is alsoa personal decision. What may be right for your business associate may not work for you?
The new subsidy or pension rollover rules
According to the new rules, they will receive the other half as an annuity. If you talk about the plans that are less than 60% funded,you can be assured that they will be forced to freeze. There will only be companies who will provide an annuity to workers.You may wonder why there are so many restrictions with the pension rollover rules.You should be informed that if all the participants requested a lump sum payout, it would drain badly needed cash from the plans. Additionally, it would make it difficult for employers to add cash to the already existing plans of pension and it is a major crisis.
The pros and cons of the subsidy or pension rollover rules
Coming to the next point, there are pros and cons to both types of payouts, without or without pension rollover rules. The lump sum distribution is favored by many.However, in those kinds of plans,you have to manage the money yourself. Also, if you considerthe last year’s market losses most people have not fared well. The annuities that are there for guaranteed payments are for life. But then they are not adjusted for the inflation of cost just in case your company isnot doing well. There might be a need to take the lump sum distribution. 84% of participants will get their full benefits.
The final decision regarding subsidy or pension rollover rules
Your age, health, ability to manage money and theneed for current cash all needs to be taken into consideration when you are deciding whether you
should go for a lump sum amount or an
annuity. You can review theseveral of the withdrawalrules too. You will also be able to contemplate different conversion. Just take time for considering all your options.
By admin • Pension • 0 • Tags: flexible pension drawdown, Pension, pension drawdown calculator, Pension Rollover Rules