MGM wrong on drawdown ‘empty pots’

John Minchin

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.

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John Minchin


Epsom. Surrey