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    • Martin Stevens
    • By Martin Stevens 13th Apr 18, 3:04 PM
    • 13Posts
    • 0Thanks
    Martin Stevens
    Drawdown pension & Lump Sums
    • #1
    • 13th Apr 18, 3:04 PM
    Drawdown pension & Lump Sums 13th Apr 18 at 3:04 PM
    I will be retiring later this year, and want to access my pension via drawdown, to get a flexible monthly income.

    I have some savings already, so I don't have any immediate need for a lump sum.

    Is it correct that I can NOT take the lump sum, and instead get 25% of each month's income tax free?

    I'd prefer to do this, so that I have a larger sum invested, which will last longer, and get the benefit of some of my income tax free.

    Not asking for professional advice, but any guidance welcome!

    Thanks in advance

    Martin
Page 1
    • dunstonh
    • By dunstonh 13th Apr 18, 3:23 PM
    • 94,495 Posts
    • 62,444 Thanks
    dunstonh
    • #2
    • 13th Apr 18, 3:23 PM
    • #2
    • 13th Apr 18, 3:23 PM
    Is it correct that I can NOT take the lump sum, and instead get 25% of each month's income tax free?
    Yes. Ad-hoc or regular is fine for the 25%. Indeed, it is one of the more common methods nowadays.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
    • Martin Stevens
    • By Martin Stevens 14th Apr 18, 4:01 PM
    • 13 Posts
    • 0 Thanks
    Martin Stevens
    • #3
    • 14th Apr 18, 4:01 PM
    • #3
    • 14th Apr 18, 4:01 PM
    Supplementary question:

    Can I then take all or part of my remaining tax free money at any time if I suddenly need a large lump sum?

    Obviously this would decrease the percentage of future monthly income which I get tax free.
    • IanSt
    • By IanSt 17th Apr 18, 10:34 AM
    • 260 Posts
    • 195 Thanks
    IanSt
    • #4
    • 17th Apr 18, 10:34 AM
    • #4
    • 17th Apr 18, 10:34 AM
    I believe in principle you could do that, but check that the scheme itself does not have any restrictions that would stop you. If it does have restrictions then you'd just have to investigate the moving of the pension to one that did allow it.
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