Newsflash: UK Budget 2014
For the first time since he entered No11 Downing Street, the Chancellor of the Exchequer has been able to give a budget speech that contained some welcome news.
What is 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 pension drawdown is an Unsecured Pension (USP) and from April 2011 they became known as Capped Drawdown and Flexible Drawdown.
- You can take a 25% tax-free lump sum from age 55
- 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 minimum or maximum amount above to suit your needs or control your tax liabilities
- The maximum income is reviewed and recalculated every three years currently
- 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