Income Drawdown

Pension Drawdown Experts

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.