How Does It Work?

Use your pension fund to provide a flexible retirement income

With this option you can normally take up to 25% (a quarter) of your pension pot or of the amount you allocate for flexible drawdown as a tax-free lump sum, then re-invest the rest into funds designed to provide you with a regular taxable income.

The income can be set initially to meet your income needs and adjusted periodically depending on circumstances as when required.

Unlike with a lifetime annuity your income isn’t guaranteed for life – so your investments need to be manged carefully.

Small cash sums from your pension fund

You can use your existing pension pot to take a lump as and when you need it and leave the rest untouched where it can continue to grow tax-free.

For each cash withdrawal, normally the first 25% (quarter) is tax-free and the rest counts as taxable income.

Beware, there might be charges each time you make a cash withdrawal and/or limits on how many withdrawals you can make each year.

There are also more tax implications to consider with taking lump sums.

Our expert advisors will talk you through all of the options available – to book a free consultation please contact us today.

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Guaranteed Income

Annuities can provide you with a guaranteed income payable for either the rest of your life or a fixed number of years.

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Cash Lump sums

When you draw benefits from your pension scheme, you can normally receive some of the benefit as a tax-free cash lump sum.

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