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Flexible Drawdown
freddymoney
Posts: 35 Forumite
What is a flexible drawdown pension?
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Comments
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There is no product of that name.
However, most modern pensions, other than stakeholder and auto-enrolment schemes, will offer flexible drawdown. These are typically personal pensions or SIPPs.
If you are after a more general explanation about flexible drawdown then google it. It's far too much to type out on a discussion board.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
In real simple terms it's a way of withdrawing money from your pension as and when you want to. You can withdraw as much or as little as you want. You need to be over 55 to withdraw from a pension and it will depend on your pension product whether this is facilitated. Also any withdrawals you make could be subject to Income Tax.I'm a Chartered Financial Planner. Trying to be helpful without giving advice.0
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I am hoping to drawdown the additional voluntary contributions I have paid into my works defined contribution pension.
Basically I hope to have saved over £100k to be able to retire by age 57. I will immediately withdraw the 25% tax free lump sum. I will then drawdown up to make up my income to approx £11,500 per annum to have it back tax free. From age 60 my various works pensions kick in so I will have to drawdown approx £2,000 per annum until age 67 when my state pension starts.
It is possible it will be worth me considering retiring at 56 depending on tax situation.Money SPENDING Expert0 -
Heres an overview from AJ Bell
https://www.youinvest.co.uk/pensions-and-retirement/accessing-your-pension/drawdown0
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