![]() The main alternative to drawdown is an annuity. If you have a defined benefit pension (also known as a final salary pension), you won’t be able to use drawdown.įor more information on different types of pensions, see our pensions guide. Self-invested personal pensions (SIPPs).You can either set up a pension drawdown arrangement with your current provider or you might need to transfer your savings to a different provider.īear in mind that you can only use income drawdown for defined contribution pensions. This allows you to keep taking advantage of the 25% tax-free perk. Remember: you can move your pension savings into drawdown gradually which is known as “partial drawdown”. Savers have had this option since April 2015 when the pension freedom rules were introduced.Įach time you move your money from your pension savings into drawdown, 25% of it is tax-free. Rather than buying an annuity, savers can move their pension savings into a drawdown product, which lets them take income when they need it. Pension drawdown, also known as income drawdown or flexi-access drawdown, is a flexible way of taking cash out of your pension savings. Pension drawdown is one way to take money from your pension pot What is pension drawdown? Taking income from my pension in drawdown.Ready for drawdown? Our pick of best pension drawdown providers can help you choose. This guide tells you everything you need to know about pension drawdown, including the fees involved and tax implications so that you can choose the right provider for you. ![]() Pension drawdown is one way of taking money from your pension pot. ![]()
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