Drawdown without Income

The changes in pensions legislation in April 2006, removed the minimum income requirement for those in Drawdown.

Drawdown without Income

Changes in legislation allow the flexibility for people to take the maximum Pension Commencement Lump Sum without having to effect an income. This is particularly useful for those wishing to realise the lump sum for a specific purpose but have no income requirement.

After taking the lump sum, the remainder of the pension will be invested in a portfolio of investments agreed with your Retirement Consultant. These will be in line with your Attitude to Risk and will take into account any future income requirements.

You would need to have a good reason for taking the lump sum without the need for income. Many use the lump sum to pay off their debts, for example. Care should be taken as the pension plan is a tax advantageous wrapper.

By taking benefits early lower benefits could be received with the result that your standard of living might be significantly affected. Most people face a reduction in income at retirement and by unlocking their pension commencement lump sum this reduction may be all the more severe.

To arrange a meeting or discuss your options further, call us now on our FREE helpline 0800 022 3103.

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