Income drawdown was first introduced in 1995 as an alternative way of drawing an income from a pension, within specific limits set by the Inland Revenue (known as GAD rates after the Government Actuary’s Department) although retirees were still required to purchase an annuity before their 75th birthday. 2006 and 2011 saw reforms to the way income drawdown works extending the option of drawdown beyond 75.
From April 2015, pensions freedoms removed restrictions for those wishing to access their pension funds, allowing unlimited withdrawals from age 55, but with all withdrawals other than pension commutation lump sums (also known as tax free cash) being treated as taxable income.
Income drawdown essentially allows pension funds to remain invested whilst taking an income from them, without having to purchase an annuity for life. The combination of tax-free cash and drawdown offer a variety of options for accessing pension funds depending on your circumstances. Proper planning and advice are vital.
If you would like to work with a team of financial experts that will make the jargon make sense get in touch today on 01635 551926 to book your free consultation.
We would like to say that 'Until 2004 we managed our own investments but then saw in a daily newspaper that Dawn was 2nd in a competition for the UK's best female financial advisor. She was based near us and we went for an initial meeting where we found her very straightforward and informative. She has invested since in areas far beyond our limited expertise and has increased our portfolio and managed it to our entire satisfaction. We are worry free, trust her implicitly and it was the best financial decision we ever made. We are able to keep in good contact with her and we look on her as a friend as much as an advisor. We would feel genuinely lost without her.
Dawn started looking after my pension around 1990. A target was set for each year and I was supplied with an annual detailed review showing progress. She has always made herself available either on the phone, in person, or by email if there were any queries or just to chat about the overall state of play. I followed Dawn’s instructions over the years with the result that by 2012 pension funds had grown to target and I was able to take the pension earlier than predicted and it allowed me to work part-time. I value Dawn’s advice and she continues to steer my savings. Without her I feel I would not have had such a good result.
Thanks to Dawn Slater's invaluable, dedicated and totally reliable advice over several years I can quite simply say that I am more than happy to continue relying upon Dawn Slater Wealth Management to advise and invest for me.