Summary of Pension and Investment Options

The main purpose of this information is not to give exhaustive detail about each of your options, but to show that taking pension benefits requires just as much consideration as investing in the plans in the first place.

Unlike company final salary schemes it is not a case of going to work one day and the next relaxing, and waiting for your bank account to be credited with your pension.

Decisions need to be made.

Which option is right for me?

• Annuity
  • Standard
  • Enhanced
  • Impaired
  • With indexation, dependants pension etc
• Pension Drawdown
  • Amount of Tax-Free Cash
  • Whether and how much income to take
  • Investment Funds to use
• Combination of both

As can be seen there are a great many choices and options to be considered which could drastically affect your income for the rest of your life, and also for your dependent’s life as well.

Clearly you will want that income to be maximised by whatever route or option that you take, which will depend on your own personal circumstances.

To help you make the right choices you will need advice. We would welcome the opportunity to provide that advice.

Summary – Important Information

Future Annuity rates are not guaranteed and any annuity purchased in the future may be higher or lower compared with a conventional annuity when the Pension Fund Withdrawal plan was affected. High income withdrawals may not be sustainable during the deferral period.

Taking withdrawals may erode the capital value of the fund, especially if investment returns are poor and a high level of income is being taken. This could result in a lower income when the annuity is finally purchased.

All references to taxation are based on our understanding of current taxation law and Inland Revenue practice, which may change in the future.

The Pension Drawdown Company Ltd is an appointed representative of Burns-Anderson PLC, 27 Great George Street, Bristol, BS1 5QT, which is authorised and regulated by the Financial Services Authority.