The Concept of Income Drawdown

Income drawdown is also called pension drawdown. It’s a kind of pension withdrawal in which you take out a portion of your pension amount and the remaining amount keep invested so that it could increase with time. Pension drawdown is a very good alternative to purchasing an annuity. With it you can withdraw an amount of up to 25% of your total pension amount; there is no tax imposed on this withdrawal.

Pension drawdown offers you a high degree of flexibility in the use of your pension amount. The remaining amount in your pension account could be transferred on to your children or dependents in case of your death.

Income drawdown is best suited for individuals who have larger funds or those having multiple retirement income sources. This is because there is a certain amount of risk involved in it; that is why it is sometimes called unsecured pension. Although there is an element of risk, but the reward of this risk taking is also great. The risk is that the income generated from this source tends to vary within fixed minimum and maximum limits. The minimum return could be naught while maximum could be as high as over hundred percent (this much high return is not possible with other schemes in the class). The income drawdown rates may at times differ between men and women.

Income drawdown facility is available until the age of 75 years. After 75 years the drawdown scheme is generally terminated and the remaining money is transferred to Alternative Secured Pension (ASP). The option of traditional annuity plan to receive regular income is open even after the termination of the pension drawdown facility.

You may get more information about the concept of income drawdown and other associated information like income drawdown rates, income drawdown death benefits, income drawdown calculator, etc., at: http://www.gerardassociates.co.uk/.

Making Safe and Secure Retirement Planning through Experts’ Help

Retirement is one of the crucial stages of one’s life when one’s income gets limited as one is unable to get regular monthly income. This may be due to critical illness, age or accidents. Therefore it is commonly suggested by the financial experts and planners to save and invest money wisely and plan for one’s retirement. Proper retirement planning will prevent the post-retirement period to get troublesome or difficult due to financial constraints. Investment in pension plans is one of the best options as this offers tax deductions and good interest benefits.

If you are an employee in UK and desire to consolidate your retirement funds in tax saving structure then you must avail the services of financial experts who will guide you to do so through hmrc QROPS. Qrops schemes facilitate the employees or any person contributing to a pension fund registered in UK qrops pensions scheme to transfer the fund overseas to a different country through proper method. There may be many different methods to plan one’s post retirement period. One may either like to go for pension income drawdown from one’s pension fund after retirement or purchase an annuity plan which may provide them different sets of advantages than the former.

Through proper overseas pension transfer schemes the employees or investors in UK can transfer one’s pension funds to one’s desired account in one’s preferred country. The Qrops transfer schemes facilitate the employees of UK to move freely to other countries and not get restrained due to the funds or debts liabilities. Thus with the help of certified financial advisors one can make safe, secure and profitable retirement planning which will help one to realize one’s financial goals and enable to pass one’s post-retirement period without much difficulties.

For other associated information, you may visit: http://www.gerardassociates.co.uk/.

Sterling Near Two-month High- Euro Hits the Bottom-Gerard Associates

At Gerard Associates Ltd we continue our daily look at factors affecting markets and currencies allowing some insight into conditions affecting exchange rates.

Cash and income timing from a UK Pension income drawdown, flexible pensions or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension drawdown, QROPS and investment income taken.

Investment market volatility and currency exchange remains a challenge. The global economics are volatile and unprecedented in history. Currency exchange continues to concern expats with UK Pensions, income drawdown now including flexible pensions, a QROPS and QNUPS (Qualifying non UK Pension schemes).

Sterling hovered near a two-month high against the euro on Tuesday on renewed worries about Eurozone peripheral debt and risks of contagion, although it failed to gain much traction despite better-than-expected UK construction activity data. The euro fell as low as 86.99 pence (€1.1495), a level last struck on May 31, this was mainly headed up by Italian bond yields hit their highest level in the euro’s 11-year lifetime, ominously reaching the same level as Spain's in a sign that Rome is overtaking Madrid as the main focus of investors' concern about debt sustainability. Italy's stock index fell to its lowest in more than 27 months, dragged down by banks with a heavy exposure to Italian debt. European shares hit a 9-month low amid worries that slowing economic growth will make it even harder to overcome the Euro zone's debt

troubles.

Sterling traded to a low of $1.6223 versus the dollar, mainly due to further news being released from across the pond regarding their debt ceiling meetings. Some traders have said sterling could find support from the news Hong Kong's CKI has agreed to buy Northumbrian Water Group in what could be the biggest takeover this year of a British-listed company. UK construction PMI data for July beat expectations with a reading of 53.5 of which showed that the sector is in expansion, compared to a forecast of 53.0, but the positive impact on sterling was limited as construction makes up less than 10% of the economy. The outlook for the UK is still lacklustre after data on Monday showed the manufacturing PMI shrank for the first time in two years, pushing sterling down from a two-month high of $1.6477.

"The data has held up better than people expected but the fixation is on manufacturing data and the services data tomorrow. The market seems to be focusing on UK growth being softer," said a FX strategist at Credit Agricole. "Against the Euro, sterling is going a bit better but it's approaching its 200-day moving average at 86.63 and last time we bounced just above that." Across the pond there was no major impact data being released, other than consistent feedback regarding meetings concerning the US debt ceiling. However the medium and low impact data that was released all missed expectations. It would seem that the market will be looking towards the next few days where we have a host of high impact data being released from the US, Eurozone and the UK.

IN THE UK

• Sterling posted a near 2 month high against the euro at the rate of €1.1495.
• Sterling retreated further against the US Dollar, posting a low of $1.6223.
• Sterling’s Construction PMI data beats expectations posting a figure of 53.5 against a figure of 53 showing the sector is in expansion.
• Outlook for Sterling is still poor based on Monday’s Manufacturing data that was released, and massively missing expectations posting 2 yearly lows.
• The pound receives a welcome lift as PMI Services, the most important of the PMI’s, is released this morning well above expectations at 55.4.

ELSEWHERE

• Euro Price Producers Index month on month narrowly misses expectations posting a figure of 0% against a forecast figure of 0.1%.
• US Core PCE Price Index month on month misses expectations posting a figure of 0.1% against a forecast figure of 0.2%.
• US Personal spending month on month massively misses expectations posting a figure of -0.2% against a forecasted posted figure of 0.2%.
• Swiss Retail Sales year on year posts a vastly better than expected figure of 7.4% against forecasted figures of 1.6%.
• The US have been put on negative outlook by Moody’s although maintain their AAA rating, however S&P say there is a 50% chance they will lose top tier rating.
• Prospects for the Eurozone and the US look equally bad as poor reports regarding Spain and Italy filter around the markets, the US despite having the debt limit raised is not out of the woods, poor GDP and ISM Manufacturing figures compound this and prompt investors to remain on a risk off strategy.

DATA TO LOOK OUT FOR

• BRC Shop Price Index year on year expected to beat previous years reading of 2.9%.
• Australian Retail Sales month on month forecast to post a figure of 0.4%.
• Euro Services PMI expected at 51.4.
• US ADP Non-Farm Employment Change expected to post a figure of 101k ahead of the Non-Farm Payroll figures on Friday this week.
• New Zealand Unemployment Rate expected to be released tomorrow at a forecasted figure of 6.5%.

Gerard Associates Ltd advises UK residents, expats and people considering living abroad on the technical and currency options available for Pensions, pension income drawdown, flexible pensions, QROPS, QNUPS and investments in a clear format allowing all customers to make an informed choice. Our service encompasses Pension including QROPS and QNUPS and investments in a clear format allowing all customers to make an informed choice.

This with the reassurance and security of UK FSA authorised and regulated advice - essential for your security.

QROPS

The Pound Hits A Low, Japan Enters Technical Recession

At Gerard Associates Ltd we continue our daily look at factors affecting markets and currencies allowing some insight into conditions affecting exchange rates. Cash and income timing from a UK Pension or QROPS (Qualifying Recognised Overseas Pension Scheme) should be considered to maximise the Pension, QROPS and investment income taken.

Investment market volatility and currency exchange remains a challenge. The global economics are volatile and unprecedented in history. Currency exchange continues to concern expats with UK Pensions, QROPS and now QNUPS (Qualifying non UK Pension schemes).

On Wednesday the UK saw the release of unemployment data which pushed Sterling into the red across the board. The jobless total in the UK fell by 336,000 to 2.46M, in the three months to March, matching a level not seen since September 2010. The market reacted in a negative way towards GBP as the number was accompanied by a downward revision to March’s numbers and those seeking jobseekers’ allowance rose by 12,400 to 1.47M for April. The UK labour market can be seen to be stuck between a rock and a hard place. As part of the government’s austerity measures, 330,000 public sector jobs are cut and reliance is placed upon the private sector to help in the regeneration process. However, with the economy showing signs of little growth and the on-going rise in energy prices, companies are unwilling to expand their workforce.

“We believe that private sector companies will become increasingly careful in their employment plans in the face of a struggling economy and elevated input costs,” said the chief UK economist at HIS Global Insight.

The publication of the Bank of England’s minutes showed the committee voted 6 to 3 in favour of keeping interest rates on hold at 0.5%. The 5th May meeting was the last attended by Andrew Sentence, who has been the chief advocator for a rate increase over recent times. He is to be replaced by Ben Broadbent, who is widely expected to be of the opinion of the majority of the members. If this is the case, it could be highly likely that the bank will likely delay any rate rise now until external pressures on prices ease off and wages begin to grow in real terms. Once consumer demand starts showing signs of recovery and the economy moves consistently in the right direction, the central bank can start tightening policy without the risk of plunging the U.K. back into recession.

“So the MPC has lost its arch-hawk, and while there are still members in favour of higher interest rates, nobody, for now at least, seems to want to run with the monetary policy tightening baton with the gusto that Sentence did,” said Global Insight.

GBP/USD saw a session low of 1.6104 whilst GBP/EUR hit 1.1309 on a day that saw an overall negative view over the Pound. Opinions in the market were that this negative view may be the shape of things to come, given the Bank of England’s interest rate policy. One scenario shows that low interest rates will stand out in a global market where policy is being tightened in many major economies. The pound may not be seen as attractive to investors given a back drop of high inflation, low growth and a central bank that has chosen an incorrect route of correction.

IN THE UK

• MPC vote 6-3 to leave interest rates on hold, rumours were running just before the announcement that Martin Weale who has previously voted for hikes was to change back to a ‘no change’ vote resulting in a 7-2 vote.
• The pound hits a low of 1.6104 against the US dollar after negative market sentiment stemming from poor unemployment figures.
• GBP finishes in the red across the board, falling 0.6% vs. euro.
• UK Nationwide Consumer confidence falls overnight to just 4 points off an all-time low and the outlook remains tough.
• This morning UK Retail Sales released match analyst’s expectation of 1.1%, factors such as good weather and royal wedding are said to have contributed. Sterling makes slight gains immediately after the announcement.

ELSEWHERE

• Japan enters technical recession as GDP falls to -0.9% for Q1, although earthquake is partly to blame, the majority of Q1 activity was before the quake and this means that Q2 could be even worse.
• Euro finds some hesitant support despite being held back by rumours regarding Greek debt restructuring.
• US Dollar helped by market sentiment as opposed to data releases. MBA Mortgage applications for May come in below expectation.
• European construction output falls Year on year for March, but fails to dent EUR/GBP strength.
• Higher shares & commodity prices help bolster the Euro.
• EUR/USD fails to break through key technical levels, prompting profit taking.
• In a TV report yesterday, Greece claim to have no desire to revert back to Drachma but future seems bleak as necessary rises in tax, lowered wages, increased retirement age to remain in the euro could lead the country into civil war.
• In the US, the Fed minutes reveal no surprises, however have started planning their exit arrangements for QE2
• Strauss-Kahn resigns as head of the IMF, lots of names suggested to replace him including the UK’s Gordon Brown.
  

DATA TO LOOK OUT FOR

• At 11.00am UK CBI Industrial Trends survey is published and is expected to improve to -5 from 11 last month.
• ECB President Jean Claude Trichet speaks today at 2.00pm, markets will be monitoring his words regarding interest rates closely
• Philadelphia Fed Manufacturing Survey is released in the US at 3.00pm and serves as a useful indicator of manufacturing conditions in the US, a figure above the expected 20.0 might suggest that nationwide manufacturing is improving and would subsequently effect the outlook for the US dollar
• Negative Existing Home Sales data at 3.00pm in the US may pull back any early strength from the Greenback.
  

Current Spot Rates (9.30am) 19th May 2011
	USD	EUR	AUD	CAD	CHF	DKK	NOK	SEK	ZAR	JPY
GBP	1.6135	1.1340	1.5164	1.5630	1.4239	8.4569	8.9553	10.19	11.18	132.100
USD		1.4227	0.9398	0.9687	0.8825	5.2413	5.5502	6.32	6.93	81.872
EUR	0.7029		1.3372	1.3783	1.2556	7.4576	7.8971	8.99	9.86	116.490

Gerard Associates Ltd advises expats and people considering living abroad on the technical and currency options available for Pensions, QROPS, QNUPS and investments in a clear format allowing all customers to make an informed choice. Our service encompasses Pension including QROPS transfers and QNUPS and investments in a clear format allowing all customers to make an informed choice. This with the reassurance and security of UK FSA authorised and regulated advice - essential for your security.