Drawdown Pensions

Income drawdown is a flexible option at retirement. It is, a type of pension plan you can utilise between the ages of 50 and 75. It allows you to take your maximum tax-free cash at the outset and defer your annuity purchase until, at the latest, the age of 75. You can decide to buy your annuity at any time before you reach age 75.

Your pension fund is invested whilst you are in Drawdown. With our advice, you choose the investments, and you continue to benefit from the usual pension tax privileges on your investments throughout.

You do have to drawdown an income from your investment fund each year. The Government Actuary’s
Department set the minimum and maximum amounts you are allowed to withdraw each year. But, you are free to vary the amount you withdraw whenever you want, providing the total for each year is within the allowable range.

If you die whilst in Drawdown, your pension fund will be able to benefit your estate or someone you specify.

Summary of Key Advantages

› All tax-free cash paid at outset
› Annuity deferral, until age 75 if desired
› Control over when to purchase an annuity, i.e. to take advantage of market conditions
› Control over the type of annuity and the optional benefits of annuities to be included, i.e. to take account of your own changing needs
› Income flexibility
› Investment control
› Investment growth potential
› Tax efficiency

As Drawdown involves investing money, your pension fund and the income it can provide can go down as well as up.