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Pension Income Drawdown Advice

Traditionally when it came time to draw benefits a retiree took tax free cash with 25% of the fund and purchased an annuity with the remaining 75%. For many people the security of a promised regular income from an annuity is highly desirable and outweighs other considerations.

NB drawdown is unsuitable for those with pension funds of under £50,000 and is really aimed at those with funds in excess fo £100,000.

For clients with larger funds the ability to control when and to some degree how income is taken is more important. Pension Income Drawdown provides a means of effectively living off the interest produced by pension investments. There are a variety of tax benefits also. However because pension income becomes dependent on investment return this  is really a path for more adventurous/ experienced investors.

Drawdown now comes in two variants: capped where the maximum income that can be taken is limited to 120% of the government actuary department's annuity rate and flexible where you can take as much income as you like - but it is taxable at the point of extraction.

You must have a fixed income from other pension sources of at least £20,000 per annum to take flexible income drawdown.

There is no longer any need to purchase an annuity at 75.

Meanwhile please feel free to Contact Us for further information.

Facts & Figures are chartered financial planners offering independent financial advice from the whole market. We are pension income drawdown experts, based in Ashford and Canterbury in Kent.


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