Is Pension Drawdown The Right Investment Plan For You? Find Out Here

By Author: Peter Parker
Total Articles: 25
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Pension drawdown rules can be fairly tough to understand especially after the recent changes that have been introduced. It is however more flexible than buying an annuity at retirement. UK pensioners are looking closely at the best pension schemes UK because of the many advantages of the scheme. The scheme was earlier known as alternatively secured pension.

The basic principle of pension drawdown is that you can take benefits from your pension from the age of 55 onwards. This is possible even if you are currently working and the pension plan remains invested even as you receive an income. The best benefits can be enjoyed if you use the services of a reputable and registered pension drawdown company.

When you decide to take an income from you pension drawdown plan, you also have to decide on the lump sum pension withdrawal of 25 percent of the fund that’s available to you. According to current rules, this decision has to be made before the age of 75. Income options are of two types – capped drawdown and flexible drawdown. You are eligible for flexible drawdown if you have assured income greater than 20,000 ...
... GBP in retirement. Under this plan, you can take the whole pension amount as lump sum.

If you do not have a guaranteed income of 20,000 GBP, then the capped drawdown plan is what you should use. You can stop and start your income as you like provided the income received is within the prescribed limits which will be reviewed every three years. Online pension drawdown calculator can help you know the potential income and the pension drawdown rates better.

The biggest advantage of pension drawdown plan is the flexible source of income in retirement. Your fund can grow even as you receive an income from it if you invest with the right pension drawdown providers. The plan also offers potentially greater death benefits than an annuity. You can consult an expert stakeholder pension provider to know more about the plan.
As stated earlier, pension drawdown rules can be pretty complex in some areas. That is why consultation with an independent financial pension service is imperative to help you make the right decision.

Harris works at Gerard Associates, which is a Financial Services Authority authorised and regulated firm with offices in Bristol and Tiverton. For more information about Qrops ,income drawdown,Pension Drawdown. please visit us at GerardAssociates.co.uk