Williams Wealth Consultancy
Unit C, The Quays
Lincoln, LN1 2XG
Mon – Thur – 8.30am – 4:30pm
Friday – 8.30am – 4pm
Saturday – Closed
Sunday – Closed
Drawdown, also known as pension drawdown, is a way of taking money directly from your pension. This way there are no limits on withdrawals. You have options on how to withdraw your money whether it is as income or a lump sum. This would typically be from a workplace or personal pension.
Once you have reached the age of 55, you have the choice to move all or some of your pension into drawdown. Once this process has been done, the monies will be known as ‘crystalised’ which means you have accessed the benefits.
You are able to take 25% of the drawdown fund as a tax free lump sum. You will be able to use the 75% in drawdown of whatever amounts you like, however this will be liable for income tax at your highest marginal rate.
The funds within your pension that you haven’t withdrawn will continue to be invested.
The value of an investment with St. James’s Place will be directly linked to the performance of the funds you select and the value can therefore go down as well as up. You may get back less than you invested.
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 levels and bases of taxation and reliefs from taxation can change at any time. The value of any tax relief depends on individual circumstances.
Contact us today for pension drawdown advice that’s right for you.
A pension is an investment vehicle into which you can save for your retirement.
Flexible Access Drawdown is a way of accessing your benefits in a flexible way, shaping the pension you require each year during your retirement.
25% of your pension fund is usually tax free, the other 75% can be drawn down and will be taxed at your highest marginal rate.
It can provide income in retirement whilst still allowing your pension fund to be actively invested. However, it might not be right for everyone, so you should seek advice.
Flexible Access Drawdown has greater investment risk attached where an annuity provides guaranteed income. You should seek advice to find out what is best for you.
To get a free copy of our guide to taking pensions benefits, please submit your contact details and you will be redirected to download the guide.