Income Drawdown
Income Drawdown allows you to be able to take both the tax free lump sum and the income from your pension without the need to lock your pension into an annuity and suffer a potentially low annuity rate.

It also allows you to keep your pension invested and have the potential to continue to grow your pension fund to help guard against inflation.  

Income Drawdown also provides death benefits to your spouse and dependents at no cost.

It also allows you to move back out of drawdown and purchase an annuity at a later age, so has the advantages of being able to draw income from your pension at a younger age and then purchase an annuity when you are older (and therefore get a potentially better annuity rate).

How It Works

How this works, is that you move your pension into an income drawdown pension (this could with your existing provider or moving it to another provider).  You can then take out the tax free lump sum that you are entitled to (this is normally 25% of the pension fund).  The remainder of the money is then invested in in order to provide growth.

You can then select a level of income to take from the pension.  This can be set at £0, which gives you the advantage that you can release your tax free lump sum without taking income from the pension if you do not want the income at that point.  The range of income that you can take is currently between 0% and Maximum of GAD rates (Government Actuary Department) which currently represents rates based on 150% of a normal annuity.

The idea behind this is to allow the growth within the pension to take care of the income taken so that your pension does not decrease in value (and in fact could potentially still grow to help guard against inflation).


To Get The Full Information On Income Drawdown, Download Our Free Guide To Income Drawdown
Income Drawdown Is Used For:
  • For those that want to release the tax free lump sum from their pension without the need to take an income.
  • For those that want flexibility with their pension and the income from it.
  • For those that want to take an income at an early age so they don’t suffer a poor annuity rate.
  • For those in good health that don't want to suffer a poor annuity rate.
  • For those that want to provide a spouses pension on death, but don’t want to incur costs for having this.
  • For those who want to keep their pension invested (to help guard against inflation)
  • For those that do not want to lock into an annuity and still receive an income from their pension
There are advantages and disadvantages to both using income drawdown or using an annuity and therefore careful consideration should be taken to decide on the right course of action for your retirement.
 
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Income Drawdown Is Used For:
  • For those that want to release the tax free lump sum from their pension without the need to take an income.
  • For those that want flexibility with their pension and the income from it.
  • For those that want to take an income at an early age so they don’t suffer a poor annuity rate.
  • For those in good health that don't want to suffer a poor annuity rate.
  • For those that want to provide a spouses pension on death, but don’t want to incur costs for having this.
  • For those who want to keep their pension invested (to help guard against inflation)
  • For those that do not want to lock into an annuity and still receive an income from their pension
There are advantages and disadvantages to both using income drawdown or using an annuity and therefore careful consideration should be taken to decide on the right course of action for your retirement.

How To Find Out More Information

We provide a Free No Obligation Telephone Consult to talk through with you the pros and cons of income drawdown based on your specific set of circumstances.  This Free Consult will help you to understand:
  • The differences between drawdown & annuities
  • How the death benefits work with drawdown
  • The drawbacks of drawdown
  • How much income can you get from income drawdown
  • The costs of each option
Our single objective with this Free consult is to help you understand your options better and there will be no obligation or pressure of any kind.

You will also receive a Free Report showing the pros and cons based on your specific set of circumstances.

Who Is This Consult For?

You will benefit from this Free consult if:
  • You want to understand income drawdown in greater detail
  • If you want income drawdown to be explained in simple language
  • If you do not want any pressure
  • If you want to talk with someone that is independent and a specialist in income drawdown
How To Book Your Free Consult

All you have to do is fill in the form below.  A specialist in income drawdown will then be in contact to discuss things with you in greater detail and help you to understand your options better:

Free Drawdown Consult

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Registered Office: Premier Financial Planning Ltd, Ladymead House, Pound Lane, Bishops Lydeard, Taunton, TA4 3AY Registered in England and Wales Number: 6697578 Telephone: 01722 717427
Income Drawdown Risk Warnings
  • High income withdrawals may not be sustainable during the deferral period.
  • Taking withdrawals may erode the capital value of the fund, especially if investment returns are poor and a high level of income is being taken. This could result in a lower income when the annuity is eventually purchased.
  • The investment returns may be less than those shown in the illustrations.
  • Annuity rates may be at a worse level when purchase annuity takes place.
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Free 2014 Guide To Income Drawdown