Income Drawdown

Also known as flexible access pensions, income drawdown puts you in control of your pension pot. So is it right for you?
If you’re approaching retirement you might be thinking about how to make the best use of your pension. Flexible access is an option that allows you to withdraw as much or as little from your pot as you like, when you like.

If you go down this route, you can usually take up to 25% of your pension as a tax-free lump sum up front. You can then keep the rest invested, reinvest it in a different fund, or withdraw it too. Either way, this part remains taxable. If you do withdraw the remaining money, you can do this in regular instalments, ad hoc withdrawals or even all in one go.

Once you’ve chosen flexible access, if you find you actually prefer the security of an annuity, we can help you use the money you’ve got left to buy the best one.

So what are the risks?
Flexible access isn’t without risk, so you need to think carefully about whether it’s right for you. Not all pension plans offer it, but we can help you find the best provider that does, as well as talking you through the risks involved.

These could include not having enough money (or running out completely) later in life because you’ve withdrawn too much or lived longer than you anticipated. Falling back on the State Pension may provide a lower income than you would like.

Any money that you’ve kept invested, or reinvested, may also not perform as well as you hoped, leaving you with a reduced income.

Call us now for your Flexible Access Pension advice: 01636 870 069

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