Moffat says that this again varies under different scheme rules, but that as a general rule “retirement can be stopped”, and a person can return to work.
Safety net
That notion feeds into another issue cited by Trott, which is that some pension schemes still operate on the assumption that a client will buy an annuity, rather than enter drawdown, and this may be difficult for a person who is retiring at an early age due to the number of years an income needs to last.
In the case of someone entering drawdown, the issue may arise that the income is more volatile, and this may not suit all clients, so Trott says understanding an individual scheme's rules around this is also key for an adviser when looking at this issue on behalf of a client.
David Thorpe is investment editor of FT Adviser
