How to manage drawdown pensions during market volatility
By Cristian Angeloni, 3 Apr 20
Quilter gives five tips on how to limit coronavirus-induced damage for retirees
If retirees are not taking money out of their pensions, then this might be a good time to put funds towards it, Greer suggested.
“Adding more to your pension pot could help to restore your income sustainability to its previous level. Indeed, some people will choose to invest now when asset prices are depressed in the hope that they can get a bargain.
“But, of course, this does mean finding money to add to your retirement savings, which won’t be possible for everyone.
“For those that go down this route it will be important to check your annual allowance.
“If you’ve already commenced flexi-access drawdown then you will be subject to a reduced ‘money purchase annual allowance’, capping the amount you can pay into your pension with tax relief.”
Tags: Covid-19 | Drawdown | Pension | Quilter | Volatility
