Remind me iml - for income or withdrawal
-
What's the difference between the two??
Tia
A person with a 25 year date to retire should be income I guess and as you get nearer retirement choose withdrawal I suppose, but really it shouldn't be any different as the age you sign up to the asset should be taken into account and then that decision should be automated surely?
-
Hi,
It is automated in terms of Pension wrappers. ISA and GIA you can select the investment term.
A person with 25 years to retirement would start in 'growth' and as you approach retirement age-Target Date you glide through a risk based approach from 100% equity(Growth), Balanced, Income, Conservative and Defensive (20% Equity)models. The models of Income/Withdrawal are identical until you sit in the Income portfolio(60/40). If Income strategy you never move from here regardless of target date. If you had selected Withdrawal strategy, you continue on the glide path journey, Conservative and Defensive.When the website is updated shortly we will make all of this a lot clearer.
Target date for pensions is date at statutory retirement age. If this is > 10 years you sit in Growth, 6-10, Balanced, 4-6, Income. However as stated. If you select the income Strategy 'Growth for Income), regardless of your age you would sit in the income 60/40 model. If you selected the Withdrawal strategy you would continue into the other two models, Conservative and Defensive.
-
Just to add to Adams description and detail, the name is an indicator of your intention for access to the funds.
If you intend to take it all, or a big chunk at a given date in the future, you may choose withdrawal, as you intend to withdraw the funds, and so we progress to a defensive position to stabilise the funds ready for withdrawal.
If you intend to access the funds in chunks over time or draw an income, then you may chose income. In this case we look to stabilise a proportion of the funds ready for you to draw as income while allowing the rest to continue to seek growth ready to be accessed at a later date