Pension drawdown options

At McMillan Wealth Consultants, we can advise you on Flexi Access Drawdown, which is a means of providing you with a flexible retirement income while remaining invested  in asset-backed funds including those invested in stocks and shares.

Drawdown is a retirement income option that was introduced in response to the lack of flexibility of annuities and the demand of those with larger pensions to have more control and flexible access to their retirement fund while taking an income in retirement.

Flexi Access Drawdown allows you to take 25% of your pension as a tax-free lump sum, without taking the remaining taxable 75% until required.

As such Flexi Access Drawdown can be beneficial for income tax planning and allows you to take income/lump sums as and when needed. You can if you wish leave your remaining drawdown fund to any chosen beneficiary free from inheritance tax. However, as with any form of investment, there is risk involved, and regular reviews are essential.

We will work with you to regularly review your drawdown fund and help your retirement income stay sustainable. Contact us for advice.

Income drawdown will reduce the size of your pension fund and the investment growth may not be sufficient to maintain the level of income you wish to draw. If you withdraw money at a rate greater than the growth achieved by your investments, your remaining fund will reduce in value. The level of income you take will need to be reviewed if the fund becomes too small – this is more likely the higher the level of income you take.

The income you receive may be lower than the amount you could receive from an annuity, depending on the performance of your investments.

The levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.

Interested? To find out more call 01273 390561

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