Reached retirement age, and unsure how to withdraw your pension? Drawdown pensions are a flexible alternative to buying an annuity for those aged 55 and over. This allows you to take a tax-free lump sum of 25% of your pension pot, and/or move the rest into income units, so you can start drawing an income from the remainder of the fund. You are then able to continue drawing an income from this fund until it runs out. Good financial planning is key to making the most of your pension fund; for example, making sure that your withdrawals are sustainable over the long-term, and ensuring you have an option in place if/when the fund runs out. Maxim Wealth Management Ltd offer professional income drawdown advice to people of all ages in Glasgow and across Lanarkshire to help you plan for your retirement in line with your specific circumstances, capital and attitude to risk.
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If you are aged 55 or over, you can withdraw take 55% of your pension fund tax-free. If you are in drawdown, you can also choose the amount of pension income that you wish. This is known as flexi-access drawdown For example, if you are still working part-time, you can decide to initially draw a smaller income, and increase it when you decide to retire in full.
What are the benefits of flexi drawdown?
- Freedom and flexibility to choose and adjust your level of pension income
- Flexi drawdown does not form part of the deceased’s estate for inheritance tax purposes, and it passed on at the beneficiaries’ rate of income tax
- Well-suited for clients with smaller pension pots, seeking to withdraw their funds in a tax-efficient manner
We can help you understand the income drawdown options available to you in retirement – and how to maximise them to your advantage