Income Drawdown

Income Drawdown is one of the options of receiving your Pension when you retire. It is the alternative to buying an Annuity with your accumulated pension savings to provide you with an income in retirement. When you retire, you transfer your accumulated pension to an Income Drawdown Provider who invests your funds and allows you to take out cash as and when you need it.

There are two rules that govern an Income Drawdown Plan:

The Income Drawdown Plan must provide you with an income for a minimum of 10 years

You cannot access more than 15% of invested funds in any one year

At the end of 10 years if you have a balance in your Income Drawdown Plan, you can take any of the following options:

Continue with the income drawdown plan

Withdrawal the balance

Buy an immediate Annuity to provide an income for life

The main advantage of an Income Drawdown Plan is that it provides you with flexibility that is not available with Pension Annuity. For instance;

You can vary the amount you access from year to year.

You can vary the frequency of accessing your money from year to year. You have the option of receiving your income monthly, quarterly, semi-annually or annually.

 You can choose not to access an income for a year or more if you do not need the income giving your funds an opportunity to grow.

The main limitation with an Drawdown Plan is that it does not guarantee you an income for life.

At Retirement Solutions , we help you evaluate if an Income Drawdown Plan the right income option for you and if it is, how you should structure it to suit your needs.

Get an Income Drawdown Projection Now!

Income Drawdown Projection Form

Download an Income Drawdown Application Form

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