Income Drawdown

Getting the maximum Drawdown from your Pension could be a viable way of funding a happy retirement.

Income Drawdown

Current UK rules state that a pension must be converted to an annuity or alternatively secured pension, by your 75th birthday. An Income Drawdown or Income Withdrawal is when you decide to leave the funds within you pension which will then be invested into a well managed portfolio. You will then be able to draw an income from the pension investment. However if you wish to release tax free cash allowance from the pension this must be done before you take any income from the investment.

Advantages of Income Drawdown

• It can be tax efficient.
• Income Flexibility
• You may be able to buy an increased annuity when you finally convert your pension.
• There can be significant benefits on the death of the policy holder, for their partner or estate.
• By deferring your annuity through the use of income drawdown you are also able take advantage of the UK government's relaxation of pension rules that came into effect in April 2006.

Income Drawdown is not without its risks, speak to an experienced adviser today for more information.

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