Income Drawdown

Need to take income but don’t want to be tied to an annuity?

Have you considered the following?

Income Drawdown

Key Facts

• When you reach age 55 you can start drawing your pension 
• If you are age 50 before 6th April 2010 you can draw your pension at 50
• You don't have to start drawing your pension at this age, if you don't need it yet you can delay taking it!
• When you start to draw your pension you can take 25% of the fund out Tax Free
• The other 75% can buy an annuity, but it never has to
• You can use it to take Income Drawdown 
• You don't have to draw any income if you don't want to 
• At the 'top end' you can draw an income 20% more than the maximum annuity you could have chosen 
• So you have huge flexibility as regards the income you take 
• Even better: you can change this income year by year 
• So, if you need more income you can increase it, and vice versa 
• And, if you die the remaining fund goes to your dependents less a tax charge 
• If you had an annuity the annuity would die with you (or on the second death of your spouse) 
• Annuities can however be bought with a guarantee period so some money goes to your dependents 
• So Income Drawdown is hugely more flexible than buying an annuity 

It is crucial that advice is provided by a qualified IFA regarding this area of financial planning. 

If you would like to speak to an approved adviser please enquire through our site.