Flexi Access Drawdown Pensions
A flexi access drawdown can be a good idea but if you want help or advise contact us today to find out more.
Flexi-access drawdown is all about using your pension pot to get a flexible retirement income. You reinvest your pension pot in funds designed to give a regular retirement income, which may vary depending on the performance of the fund. Remember that it is not guaranteed for life. You can take a quarter or 25 percent of your pension pot as a lump sum (tax-free). The rest of your pension pot is moved into funds that let you get a taxable income.
You can invest in funds that match your income goals. The income you get is not set. It might be adjusted depending on the fund’s performance.
After taking a tax-free lump sum, you can take your income immediately or wait until a specific date. You can move your pension pot bit by bit into income drawdown.
One way of doing this is taking up to a quarter of every tax-free amount you get from your pension pot and placing the rest into income drawdown. Contact Trusted Pensions to find out more
What to Consider When Taking Flexi-access Drawdown
You have to plan how much income you will take under flexi-access drawdown. If you don’t, you might run out of money. If your investments perform poorly and you don’t properly adjust the amount you take, your money won’t last long. You might also run out of money if you get too much in the early years or live longer than you have planned for.
Not all pension providers or schemes provide flexi-access drawdown. You have to compare the offers of different providers so that you can choose one that suits your needs and budget.
Comparing products on your own will be difficult, especially if you’re not familiar with them. This is where we come in. Trusted Pensions has a team of financial advisers who can recommend the product that meets your needs and situation.
Any amount you take from your pot using income drawdown will be taxed in the usual way. Large withdrawals will incur a higher tax band. If you draw an income from flexi-access drawdown, you can get some tax relief.
We can assess your financial situation and tell you if flexi-access drawdown is right for you. We will compare the products available in the market and help you find the right product. You can nominate your family members or anyone you would like to get the money left in your drawdown fund when you pass away. If you pass away after the age of 75 and your beneficiary takes the amount as a lump sum or income, the money will be added to their income and taxed as the usual way.
If you pass away before the age of 75, the amount left in your drawdown fund will be given to your beneficiary tax-free whether they get it as a lump sum or income.
The provider should pay the money within 2 years. If they miss the 2-year limit, payments will be added to the beneficiary’s income and taxed in the usual manner.
Are there Other Retirement Income Options?
Flexi-access drawdown is only one of the many options available to those who want to use their pension pot to get a retirement income.
We can help you determine the best retirement income for you. Our financial advisers can give confidential advice. We also provide free government-assisted services and legal advice check.
Our financial advisers are customer-friendly and supportive. They will provide all the information you want to know.
We want you to make informed choices and decisions. That is why you can expect only honest advice and services from us.
Call us today!