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Mr D approached The Pension Drawdown Company in November 2002 when he was retiring aged 60. In February 2003 his pension fund was used to provide 25 per cent as tax-free cash (£11,305), with the remainder placed in an income drawdown plan with a fund value of £33,916.

Since then Mr D has enjoyed an income of £25,464 as well as the tax-free cash sum. A plan which was worth £45,221 to start has paid out a total of £36,759 so far and with proactive management is still worth £41,655.

The important thing to Mr D at the time was that his wife would receive the full value of the plan should anything happen to him. Now both are pleased that the fund has grown and there is also the hope they will be able to leave part of this in their wills to their children (subject to the 55 per cent government recovery tax charge of course). In their opinion, this is better than the fund dying with them.