Retirees who put their cash into income drawdown plans at the start of last year could have already seen around two years of income wiped, according to pension provide Aegon. The schemes allow customers to pull off an income while their savings remain invested, but turbulent markets have significantly dented values, found research.
Those who haven’t adjusted how much cash they draw off could find their pots run out of money two years earlier than estimated. And if volatility continues pensioners could easily erode 10 years worth of income, Aegon has calculated. This is because the amount of income that was thought ‘safe’ to take at the start of last year has significantly reduced thanks to lowered investment values. FULL REPORT