Allows clients to access their pension savings whenever they need to provide an ongoing retirement income while investing the remaining funds.
From 6 April 2015, any client wanting to start taking benefits, including drawdown, has to opt for flexi-access drawdown. At the same time flexible drawdown automatically became flexi-access drawdown.
When designating funds for drawdown, the client can normally take 25% of those drawdown funds as a tax-free pension commencement lump sum (subject to their available lifetime allowance) and then take drawdown income from the balance, which remains invested. The drawdown income is assessable income for tax purposes and will normally be paid on the 1st of each month (subject to the usual bank clearing system). Dentons will apply normal PAYE rules to these payments from the individual scheme account.
Once the client has taken their first flexi-access drawdown income payment from any pension scheme, the money purchase annual allowance of £4.000 will apply to them.
For the treatment of funds on death, please see death benefits.
Whatever your retirement needs, one of our experts will be happy to discuss how we can help you achieve your goals.