Pension Income Drawdown;
Flexi-Access Drawdown & Capped Drawdown Options.
These are particularly good retirement options and, realistically, are most appropriate for anyone who has pension capital of at least £100,000 left after the payment of their tax-free cash lump sum.
Generically, Pension Drawdown allows an income to be taken directly from the fund itself.
It also enhances your retirement options by letting you put off an annuity purchase until a time when it’s more suitable. And these plans still allow up to 25% of the retirement fund to be taken as Tax Free Cash.
These schemes are quite complex and not suitable for everyone. But they can offer a more flexible approach to retirement income.
- Not all schemes offer the option of income drawdown
- There are two types of drawdown – flexi-access drawdown (FAD) and capped drawdown
- Flexi-access drawdown allows as much or as little income to be taken whenever needed. However, taking income under flexi-access drawdown normally means that the most that can be paid into your pensions reduces to £4,000 a year
- There’s an annual limit to how much income can be taken under capped drawdown and Capped drawdown is only available to those who were already in it before 6 April 2015
- You don’t have to stay in drawdown – if you want to, you can use the funds to buy an annuity at a later date
- On death, beneficiaries can use income drawdown, allowing the pension pot to pass down the generations
You might want to talk to us first before considering this option
The value of your investment can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance. Investing in shares should be regarded as a long-term investment and should fit in with your overall attitude to risk and financial circumstances.
Tharin Johnson, East Grinstead
Thank you for your continued good work
Dear Keith, It was a pleasure to catch up with you today and thank you for the in depth report on our investments with you. Thank you for your continued good work.
Andy Setten, Worthing
Really helped me plan the next 5 years
Your help going through my Investments and Pensions and your advice concerning the future really helped me plan the next 5 years. As I mentioned I am extremely grateful to you and all at Pembroke for all your good advice over the last 15 years or so which has certainly borne fruit.
