The claim by annuity provider MGM Advantage that 50 per cent of income drawdowners risk running out of funds is utter tripe (FA 19 February).
1) I cannot see many annuity providers offering better than 6 per cent to a 65-year-old.
2) If you can achieve a 6 per cent net investment return – easily achievable with a distribution fund – and take a 6 per cent income, you will still have a £100,000 pot at age 92, or even aged 192.
John Minchin
Retired,
Epsom. Surrey
