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Flexible Drawdown

If you have over £12,000 pa in retirement income - this can be made up from Final Salary, Annuity and State Pension money - you have the option to take any other pension pots as a taxable lump sum.

The Pension Adviser offers a Fixed Cost service for the withdrawal of Pension funds via Flexible Drawdown - meaning you don't pay a penny more than you have to for Flexible Drawdown. The fee can be taken from the pension pot, which is a very cost effective way to pay as you are not making the payment from taxed income.

Please complete our contact form and one of our Independent Retirement Specialists will call to discuss your specific circumstances.

Flexible Drawdown in action:-

Martin is 65 and has a Final Salary pension income of £13,000 per annum. He has a personal pension pot valued at £70,000.

Martin chooses Flexible Drawdown as he feels the returns from annuities are poor and unlikely to improve.

Martin takes his tax free cash of £17,500.

The residual fund of £52,500 goes into flexible drawdown.

Martin can take up to £28,865 this year and only pay basic rate tax which he decides to do. This yields a net payment of £23,092.

Total received in year 1 = £40,592

The next year the remaining £23,635 is within Martin's basic rate tax allowance so he can take the full amount out. The second payment closes the account and the net payment received is £18,908.

Martin has paid basic rate tax on his withdrawals (as he would have if he had taken an annuity) and received a total net income of £59,500 of the original £70,000.

There are several rules relating to Flexible Drawdown which have to be met and are detailed below.