Income Drawdown

Aviva's income drawdown plans offer you a great deal of flexibility and control in how you take your retirement benefits. Here are some guidelines to help you decide whether this type of plan is the right option for you.

Are you eligible for an income drawdown plan?

To be eligible, you need to be aged over 55, and usually have a minimum of £50,000 in your pension fund(s). You must discuss your retirement options and take advice from a financial adviser before taking out an income drawdown plan.

It may be the right plan for you if:

• You're looking for greater flexibility with your options at retirement, such as retiring gradually and supplementing your earned income.
• You want to receive an income while leaving the remainder of your pension fund invested for potential further growth.
• You want the ability to vary your retirement income each year and take control of how and when you receive it.
• You want to have a choice of investments in which to place the remainder of your pension fund, with the potential for growth.
• You accept that the value can go down as well as up and is not guaranteed. While funds in your pension plan have the potential for higher returns, there is a risk that returns could be lower and consequently provide you with a lower income than if you'd bought an annuity at the start. If you buy an annuity at a later date, your income may be lower because of changes in annuity rates, even if the investments have grown.

It may not be the right plan for you if:

• You want an income that is guaranteed for the rest of your life. In this case, an annuity may be more suitable for you.
• You want to determine the level of your income at the outset, rather than have the ability to vary it. Again, an annuity may be more suitable.
• You want a lower risk option where your income is guaranteed not to fall.

What's the next step?

Find out more about how to apply for an Aviva income drawdown plan. The first step is to talk it through with your financial adviser to make sure it's the right type of retirement income plan for you. If you don't have an adviser, you can find one in your area at www.unbiased.co.uk.

WC03039 09/2011