INNOVA Lifestage Income Plan
The INNOVA Lifestage Income Plan offers retiring Barbadians another way to access the money saved and invested in their personal (RRSP) or group pension plans.
INNOVA Lifestage Income Plan
This plan is an income drawdown policy, which has been a pension benefits option in the United Kingdom since the 1990s. It is a flexible retirement alternative to annuities for retirees and allows you to retain control of your pension savings. Rather than using those funds to purchase an annuity, you leave your savings invested and “drawdown” a monthly income. By leaving the funds invested, you gain the benefit of potentially greater returns which can help protect your pension from inflation. Its flexibility also provides the opportunity for you to leave any remaining funds to your beneficiaries at the time of your death.
How to Invest
With an income drawdown your primary benefit is choice. You are no longer bound to purchasing an annuity with unattractive interest rates which would leave nothing to your family when you die.
An income drawdown is a complex product and is best suited to someone who has a more adventurous attitude to investment risk.
Considering Investing?
Depending on the size of your pension, an income drawdown may not be well suited to your circumstance, particularly if it is going to be your primary source of income during retirement.
To find out if the INNOVA Lifestage Income Plan might be the right solution for your retirement years, contact our pensions department to find out more.
