Retirement BridgeSM: Evergreen Income Fund

The Retirement BridgeSM – Evergreen Income Fund is a low-cost income drawdown strategy, designed for retirees that want to preserve capital for Estate planning or for withdrawal at any time. The income rate will be set to pay out a sustainable level of income so that a retiree’s capital never runs out. We expect this Fund to appeal to individuals over age 75, but it is accessible from age 55.

 

Objective

Capital preservation, whilst providing a sustainable retirement income (c. 2% to 5% p.a.)

Performance Expectation

1.5% per annum over the Bank of America Merrill Lynch 5–10 Year Sterling Corporate index (net of charges), with long-term volatility below 6% per annum.

Why The Retirement Bridge – Evergreen Income Fund Might Be Appropriate For You

The Retirement BridgeSM – Evergreen Income Fund is designed for defined contribution pension schemes that wish to offer members’ a low-cost income drawdown arrangement (in or out of the existing scheme) that preserves capital. This gives members’ the ability to pass on benefits on death to a Directed Beneficiary in the form of an extended drawdown or a lump sum payment to the Estate (subject to tax).

Key Points

  • Diversified growth portfolio

  • Proactively managed to reduce volatility

  • Utilises a mix of funds (internal and external)

  • Can be white-labelled

  • Monthly income with original investment maintained

  • Member retains ‘ownership’ of capital (vs. an annuity)

  • Flexibility to make additional withdrawals

  • Value for money

Strategic Asset Allocation

We proactively manage the asset allocation to meet the fund’s objectives.

AB as at 31 December 2020 unless otherwise stated.

Past performance is no guide to future performance. The value of investments and the income from them can fall as well as rise and you may get back less than originally invested.

Related Resources

Flexible DC Solutions
Managing To Your Objectives
AB Target Date Funds Mission and Purpose
Making Target Date Funds Work For You