Guaranteed drawdown is a hybrid solution which sits between an annuity and income drawdown. It carries the growth potential of drawdown but also offers a guaranteed lifetime income like an annuity.
Income drawdown is attractive to some because of it’s ability to retain assets within the estate and flexibility to take income when needed, however Investment risk and the potential to run out of money can be a worry. This is where guaranteed drawdown fits in.
MetLife offer this solution exclusively through qualified advisers and it’s not available direct. Metlife are a huge US company with 100 million customers across 50 countries worldwide.
MetLife’s Retirement Portfolio, offers a Guaranteed Drawdown that combines the security of an annuity with the flexibility offered by drawdown. By giving you the protection of a guaranteed income for life, along with the potential to grow your investments, it provides the best of both worlds.
As well as a secure income for life that won’t run out, Guaranteed Drawdown lets you choose when, how often and how much income you take. You can access further funds for a one-off income top-up, although this will reduce your guaranteed income. There’s also the potential to benefit from market gains through annual lock-ins of performance, which could increase your guaranteed income in the future. You can also make further pension contributions, to take advantage of valuable tax relief and give your guaranteed income an extra boost.