When choosing how best to take your pension, the first decision to make is whether you want to draw the tax free cash amount. This is normally a maximum amount of 25% of the fund value. With the residual fund there are generally two options available, although we can potentially mix and match between the two.
Certain features can be built into your annuity so as to protect some of the money on early death or protect against rising prices in the future. These features will reduce the amount of income you will receive initially but can help protect against future events.
You may also be eligible for potentially enhanced annuity rates if there health issues.
This option does provide greater flexibility in retirement however and allows for changes to income which can help reduce income tax. You may also be able to get your whole fund out in cash, less tax, in some circumstances.
It is generally suggested that pension funds in excess of £100,000 may be suitable for income drawdown however our Drip-feed Drawdown option may suit smaller funds.
You may also be interested in this Opus Gold Income Drawdown Article