Income drawdown is a way of withdrawing money out of your pension pot to live on during retirement. This normally comes from a defined contributions pension or private pension plan. The current minimum age to withdraw is 55 but may change in the future.

Usually, the pension pot would be invested in balanced low risk assets rather than cash that earns nil interest. The ideal situation is to withdraw only the interest earned annually on your investment so that you do not lose any capital.

For many, this is not possible as they would need more income to survive on. If this is the case, then you need to use a drawdown calculator to determine how long your pension will last and how much you can realistically withdraw annually. This is an important factor to consider when planning before retirement. It is vital that you consult with your financial adviser, as each individual’s financial circumstances are unique.

Is pension drawdown right for you?

• You want your money to remain invested
• You want the flexibility to withdraw funds as and when you need
• You want to take out different amounts each year
• You want to manage your tax liability*

The type of pension product you choose will depend on your individual financial circumstances and needs during retirement. It is vital that you contact your adviser to determine which option is best for you and gives you more flexibility. [email protected]
*https://www.which.co.uk/money/

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.