#Pension drawdown series

Up to 25% of your total pension pot can be taken as tax-free cash.

You can move your pension into flexible drawdown all at once, or move smaller amounts bit by bit. Pension drawdown allows you to take an income from your pension while keeping the rest of your pension fund invested.įrom the age of 55 (rising to 57 from 2028) you can opt in to pension drawdown and start withdrawing from your pension. To learn more about how pension drawdown works and the pension drawdown rules, our client services team is happy to help. Your pension will remain invested, and the size of your pot and amount of money you can withdraw will depend on how your investments perform. However, it’s important to know that you aren’t guaranteed an income. Once you start pension drawdown, which is also known as flexible-access drawdown or income drawdown, you can withdraw taxable income from your pension pot as and when you need it.ĭrawdown offers the potential for growth through investing, and it might be right for you if you’d like to be in control of how and when you access your pension funds.

#Pension drawdown series

You’re able to take 25% from your pension tax free, with subsequent withdrawals taxed at your marginal rate of income tax. Or if you would prefer, you can take a series of smaller payments as and when you want, of which each payment will be 25% tax free. Once you turn 55 you can use pension drawdown to take income from your pension, while keeping the rest invested. Pension drawdown is a flexible way to access your pension in retirement.