“Drawing my pension – what do I need to know?
Since Pensions Freedoms were introduced in April 2015, there’s a lot more choice in how you draw your pension pots. But more choice can also lead to confusion! This guide outlines the retirement options for you and things you’ll need to consider when choosing the option or mix of options that’s right for you if you have a defined contribution pension. By the way, as completely independent financial advisers, we’re here to help. Just give us a call.
So, what are my choices?
There’s lots of choice. But it’s important to make the right one!
1. You can get a flexible requirement income – known as Flexi-Access Drawdown
You could opt for Flexi-Access Drawdown. With this type of retirement option, you can leave your money in your pension pot and take an income from it. Any money left in your pension pot remains invested, which may give your pension pot a chance to grow but it could go down in value too. A quarter of your pension pot can usually be taken tax-free, and any other withdrawals will be taxed whether you take them as income or as cash lump sums. You may need to move into a new pension plan to do this. You can draw a tax-free lump sum and choose not to take an income until you want to. Alternatively, it may be possible to take part of your tax-free cash over time as tax free income. Some pension products can automatically move your pension into Flexi-Access Drawdown. For others you may need to switch to another pension provider. We can help by recommending a product which fits your circumstances and needs…”
To learn more download our Free Pension Drawdown Guide.