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Pension Drawdown - Advantages

• Access to tax-free cash immediately
• Flexibility to vary your income according to your requirements
• Control the level of income tax you pay
• Control of your investment
• Funds benefit from investment growth in a tax-efficient environment
• Choice not to purchase an annuity
• Option to take unlimited amounts if you meet the MIR (see Flexible Drawdown)
• Choice of death benefits for dependents

Pension Drawdown – Disadvantages

• Future investment returns are not guaranteed
• High withdrawals of income may not be sustainable
• The higher the level of income withdrawal chosen the less that may be available to provide for dependants
• Increased flexibility brings increased administration costs
• The level of income may change due to the reviews