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The Pension Drawdown Company specialises
in providing advice on all aspects of pension
drawdown and investments

 
 
10 March 2010

How Safe Is Your Pension

Defined Benefit, or Final Salary Schemes, in the UK have a collective deficit of £253 billion as at the end of March. This is reported by the government sp…

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Pension Drawdown

A Pension Drawdown (or Income Drawdown, Income Withdrawal, Pension Release as they are sometimes called) is a personal pension plan from which you can draw an income.  Since April 2006 the official name for this type of plan is an Unsecured Pension (USP).  A Pension Drawdown plan allows you to unlock the tax-free cash from your pension plans without taking out an annuity.

You retain ownership of the funds and the funds continue to be invested.  A pension drawdown is an alternative to an annuity which gives greater flexibility.    The main features of a Pension Drawdown plan are:

  • You can take a 25% tax-free lump sum from age 50 (55 from April 2010)
  • You can take an income between 0 and 120% of the rate set by the Government Actuaries Department (GAD)
  • The income you withdraw can be varied at any time up to the maximum amount to suit your needs or control your tax liabilities
  • The maximum income is reviewed and recalculated every five years
  • You can transfer any number of pension plans (personal and occupational) to one single income drawdown plan
  • You retain ownership of your pension fund and control of your investment
  • You can defer buying an annuity and you have the option to convert to Alternatively Secured Pension at 75
  • Choice of death benefits for dependents
  • Your Spouse can receive 100% of your fund on your death

You can see from the Annuity v Income Drawdown rate tables what tax-free cash and income you could expect if you had a pension pot of £100,000 now.

To learn more about Income Drawdown and the options available visit the following pages or call us FREE on 0800 03 04 008 to talk to one of our drawdown specialists:

Pension Drawdown - How does it work
The Rules
Pension Drawdown - Advantages/Disadvantages
Pension Drawdown Death Benefits
Annuity v Income Drawdown Rates
SIPPs
Guaranteed Income - The Third Way
Alternatively Secured Pensions (ASP)
ASP Death Benefits 

It is now some 19 months since I invested my pension funds with The Pension Drawdown Company and I can confirm that I am very pleased with the ... click here for more

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