For larger pension funds, Income Drawdown gives a greater degree of flexibility in choosing the level of income you take from your pension fund, it allows your fund to remain invested for future potential growth, and can offer a number of ‘death benefit’ options for your dependants and provides the following benefits:
However, with this added flexibility, comes a greater degree of complexity, risk, and cost, such as:
Such an arrangement is however appropriate to consider for investors who have pension values exceeding £100,000, are prepared to take an ongoing investment risk and may want to take the full tax free cash but lower levels of pension initially. Additionally these schemes are suitable for those with other sources of income in addition to that generated by their pension, e.g. rental income, or for those whose life expectancy is less than favourable.
For more information on how we act on behalf of our clients, our payment structures and terms please read our Retail Client Agreement (here).