Income Drawdown

Income Drawdown (or Unsecured Pension) is the given to the facility to continue to keep your retirement savings invested but be able to take a lump sum up to 25% tax free and to take an income from the fund if need be. The facility can only go on to the age of 75 at which time an Annuity has to be bought or the money transferred into an Alternatively Secured Pension.

The maximum income allowed is 12% of the highest level of income determined by the Annuity Tables, with the minimum being nil. This means that the amount of income can be varied each year so perhaps enabling full retirement to be gradually phased in.

Careful consideration should be taken if you are thinking of going down this route and we recommend advice to be given.