What is pension drawdown? What are the pension drawdown rules? What are drawdown advantages over an Annuity and how do I move my existing pension into a drawdown arrangement? Are questions we are asked on a regular basis.
In essence, pension drawdown offers the pension holder more control over how they take their pension benefits and how they pass any remaining pension may be past onto beneficiaries after their death. Pension drawdown potentially offers (with appropriate pension fund management) more income in retirement than an annuity, particularly at present with annuity rates at a low point.
In Drawdown, income can be withdrawn from a pension fund as required either as regular income or in lump sums. Current (and frozen) Company Pensions and Personal Pension schemes can all be converted to pension drawdown although special rules do apply to Final Salary Pensions. One, or more, pensions may be converted to drawdown using a personal pension scheme set up for the purpose.
We specialise in pension advice and can help with one, or more, of the following:
- Advise you on pension drawdown arrangements, their benefits and risks.
- Assess your current pension arrangements and ensure drawdown is the right move for you.
- Recommend the most appropriate receiving pension arrangement for you.
- Move one (or more) existing pension schemes into a drawdown arrangement.
- Arrange tax-free lump sums.
- Ensure any remaining pension fund is left to chosen beneficiaries on your death.
- Managing your pension fund for growth.
- Manage your tax position.
Drawdown is not the right option for everyone and you should carefully consider both the benefits and the risks.
We are a long established Financial Advice firm specialising in pension advice. Most of our work is related to Frozen pension solutions, pension drawdown arrangements and final salary pension transfer advice. You can read more on our about us and testimonials pages.
To arrange a free pension review to establish if pension drawdown is the best way forward for you complete the contact box below and we will call you back to arrange a convenient date and time.