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withdrwing pension
Comments
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Income drawdown leaves the 75% after the lump sum invested - you can choose to take or not take an income from this.
http://www.pensionsadvisoryservice.org.uk/personal--stakeholder-pensions/income-drawdown
An annuity is where the rest of the pension pot after the 25% tax-free lump sum is given over to an insurance company to provide an income for life.
http://www.pensionsadvisoryservice.org.uk/personal_and_stakeholder_pensions/annuities0 -
How much are the pensions worth, alistair?0
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not a lot
£7000 & £34000 -
So you are entitled to withdraw a tax free sum of £2600 in total, which will leave you with an investible pension fund of only £7800.
Because you are so young, buying an annuity doesn't seem a smart move unless you are so ill you have only a short-life expectency. I would be surprised if any annuity would get you much more than £18-£20 a month.0 -
thanks for all you help0
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