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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) and from April 2011 they will be known as Capped Drawdown and Flexible Drawdown.

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 55
• You can take an income between 0 and 100% 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 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
• Choice of death benefits for dependents
• Your Spouse can receive 100% of your fund on your death

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.