Pension Drawdown Room

Pensions drawdown is a flexible income option that allows you to take income directly from the money you have accumulated in your pension fund.

• With pensions income drawdown options, you have the freedom to determine how and when you receive your money. This gives you the ability to choose the level of income you receive and adjust it as your circumstances change over time. Pension drawdown offers greater flexibility compared to traditional annuity products, which offer a fixed income for life, but it also comes with more risk as the value of your investments can go up or down.

When choosing a pension drawdown plan, there are several factors to consider, including:

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  Your retirement goals:

  Consider what you want to achieve in retirement and how much income you will need to support your lifestyle.

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  Your pension pot size:

  Your pension pot size will determine how much income you can drawdown each year. You should consider whether this income is enough to support your retirement goals.

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  Investment strategy:

  Pensions drawdown involves keeping your savings invested in the stock market, so it’s essential to choose an investment strategy that matches your goals and risk tolerance.

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  Fees and charges:

  You should be aware of the fees and charges associated with the pensions drawdown plan, including any ongoing charges and withdrawal fees.

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  Tax implications:

  Pension income drawdowns is subject to income tax, so you should consider how much tax you will have to pay on your income.

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  Longevity risk:

  Unlike an annuity, pension drawdown does not provide a guaranteed income for life. You should consider how you will manage the risk of outliving your savings.

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  Financial advice:

  It’s essential to seek financial advice from a qualified advisor who can help you choose the right pension income drawdown plan for your needs and goals.

Download our guide and speak to one of our advisers to help you understand if a drawdown is right for you.