If you allow for the provider’s profit margin on the latter, that is far from being self-evident, except perhaps with very small pots. Providers are very secretive about margins, and they clearly vary according to the amount of business they are seeking to write, but I would put a reasonable budget figure at 15 per cent.
I am certainly very relieved to have reached retirement late enough myself to go down the drawdown root.
Roger Morton
Retired director
Derbyshire Investment Services
Matlock
Derbyshire
