Drawdown Wise - Pension Overview

Forget The Jargon

Select our Easy-View Option below to watch a short clip summarising your pension options.

Under the new pension freedoms, you can mix and match the options below, however not all pension schemes/providers offer every option listed.

The Options Available | Freedom & Choice

~ Delay taking your pension benefits - allowing your fund to grow tax-free ~
~ Use your pension fund to provide a flexible income during your retirement ~
~ Use your pension fund to purchase a guaranteed income for life ~
~ Withdraw small cash amounts from your pension fund ~
~ Withdraw your whole pension fund in one transaction ~
~ Create a variation of the above options to suit your circumstances ~

Drawdown has become the most popular way to access your pension. CLICK HERE to access this FREE guide that tells you everything you need to know.

Case Study | Income Drawdown

Carol, 63, is approaching retirement and considering pension drawdown. Carol has a Self Invested Personal Pension worth £500,000 and no other retirement savings. Before she retires she is keen to pay off the final £50,000 of her mortgage.

She decides to access £200,000 of her fund now by taking £50,000 as a Tax-Free lump sum and putting £150,000 into drawdown. This allows Carol to pay off her mortgage and once she retires she will start taking income from the drawdown fund as and when she needs it.

The remaining £300,000 of her fund is untouched, meaning she can draw a further Tax-Free lump sum in the future. Both her drawdown funds and the rest of her funds remain invested in her Self Invested Personal Pension (SIPP).

Weighing Up Your Options | 3 Pension Options In 3 Minutes

This short clip summarises pension drawdown, encashment and purchasing an annuity.

IMPORTANT INFORMATION

Pension Guidance

What you choose to do with your pension is an important decision which you may not be able to change.

You should check that you are making the correct choices and understand the risks involved.

The government's impartial Pension Wise site can help you and we can also offer you personal advice.

Please note the information on our website is not personal advice.

It's important to plan ahead for your retirement. Here, we explain why pension planning is so critical, and describe some of the options available to you. This information is intended only as guidance. For advice on your specific circumstances, please get in touch.

A pension is a long-term investment. The fund value may fluctuate and can go down. Your eventual income may depend upon the size of the fund at retirement, future interest rates and tax legislation.