- By Kevin Stelfox
- Published 12 March 2010
- Investing
-
Rating:
Unrated

Income drawdown can be considered as an alternative to annuity plans. Similar to annuities, the income drawdown concept has been introduced for the benefit of retired individuals. Pension annuity is common amongst individuals who are approaching their retirement. An annuity is usually adopted to convert a retired individual’s pension funds into regular and fixed source of income. However, with income drawdown the concept differs slightly, as the invested pension fund is not utilized to obtain guaranteed income. The concept of pension fund is to reinvest in an array of assets in order to obtain varying income out of this fund.