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.
Yvette Jeal
Appreciate the work done this year in growing my investment
Just wanted to drop you a line to thank you for coming around earlier this week. Appreciate the work you have done this year in growing my investment and it was a helpful conversation in every way!
Alison Hutchinson, Shoreham-by-Sea
We feel ‘looked after’ by you
We are more than happy with the way you, Stuart and anyone else involved at Pembroke have dealt with our pensions/transfers. You have always explained things in a way that’s easy to understand without being patronising and we feel ‘looked after’ by you. The pension transfer too was so easy and I have been kept informed every step of the way.
