Income Drawdown Calculators To Help You Work Out Retirement Income
Income Drawdown Calculators To Help You Work Out Retirement Income
At retirement a lot of people face the dilemma of being left with no savings in the bank and a sudden cut down in income that leaves them bewildered and hopeless. Their only income source after retirement is the pension fund that has accumulated over the last few decades. That may or may not be enough to cover household expenses, mortgage payments or house rent and any additional debts that the individual might owe at the time. The option before a retiree is simple. He/she can withdraw the accumulated income and be satisfied with whatever the amount he's getting or he/she can invest his income in a suitable retirement plan.
There are two main types of financial plans for such an individual. They can choose to invest either in Annuity plans or Income Drawdown Plans. In an annuity plan, your pension fund is your basic investment and you receive regular and fixed profits on it.Income Drawdown Plans have a risk factor involved. Your pension fund is your main investment but the interest you receive on it is variable depending on market returns for that period of time. If the returns are not good you could receive less interest. In the event of a major fall in the market, your deposit investment can diminish too. The probability of getting higher returns is what attracts a lot of individuals to Income Drawdown Plans, also called Pension Drawdown by some.
To calculate the maximum interest that you will receive on your pension fund, you can use various Income Drawdown Calculators available online. These income calculators require you to enter certain information, for you to be able to calculate your profits. You're generally asked to give the exact amount of your pension. This is your total investment in the Income Drawdown Plan. You're asked for your sex, whether you're male or female. Additionally, you are asked to give your age at the time of deposit. The income calculator gives you the exact interest that would be payable to you, with the amount that you are depositing. This is calculated based on the GAD rules at the particular time and vary from year to year. Some Income Drawdown Calculators allow you to enter a date, so that you can calculate the income based on the GAD rules at that specific period of time. This feature enables you to calculate income drawdown for any date after 2006.
The Income Drawdown Calculator is an extremely useful tool for people who are interested in this kind of pension plan. For a more comprehensive explanation of the different types of Drawdown plans it is best to acquire the services of a financial expert in this field. He will be able to give you a better idea of which plan suits you best and will give you the greatest interest in long-term. For people who do not want the risk of Drawdown income plans, the option of Annuity Plans is always there. But there too financial expert advice is recommended.
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