Flexible Drawdown
The following taken from the Pensions advisory services summarises nicely the new rules regarding Flexible Drawdown which for clients wishing to take more than 25% of their pension fund may be of interest.
Individuals with a secure pension income of £20,000 may use flexible drawdown to draw all their pension savings as income without any restriction.
What is flexible drawdown?
Flexible drawdown will allow some individuals the opportunity to withdraw as little or as much income from their pension fund, as and when they need it. You have to declare that you are already receiving a secure pension income of at least £20,000 a year and have finished saving into pensions.
What is meant by secured pension income and how is the £20,000 calculated?
• A state pension being paid to you either from the UK or from Overseas.
- You will need to complete a declaration that they satisfy the required conditions.
- You need to finish saving into pensions.
Secured pension income means:
- A company pension being paid to you either from the UK or from Overseas; or
- An annuity being paid to you (from a personal pension or company pension) either from the UK or from Overseas;or
- A state pension being paid to you either from the UK or from overseas.
- Posted in Uncategorized
- No Comments
