A Pension Drawdown (or Income Drawdown, Income Withdrawal, Pension Release as they are sometimes called) is a personal pension plan from which you can draw an income. You may also hear the names Capped Drawdown and Flexible Drawdown when referring to Pension Drawdown.
If you would like to speak to a friendly advisor about Pension Drawdown, please call us free on 0800 03 04 008, or send us an email.
You can use our drawdown calculator to calculate how much income you can obtain from your pension pot.
The drawdown calculator is free to use. We never pass on or share your details to any third party.
The value of investment and income from them may go down.
You may not get back the original amount invested.
THIS CALCULATOR IS FOR ILLUSTRATIVE PURPOSES ONLY.
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The introduction of the new freedoms means pensions have recently become a much more attractive savings option.
The Government has shaken up the rules that will affect everyone coming up to retirement and some already in retirement. These changes are due to take effect from April 2015.
In April 2015, the Chancellor will scrap the "punitive" 55 per cent rate on drawdown pension funds due when the holder dies. Dr. Ros Altmann, the pensions expert and Government adviser for older people, said: "This is another great piece of news for pension savers".
For the first time since he entered No11 Downing Street, the Chancellor of the Exchequer has been able to give a budget speech that contained some welcome news. Pensioners will be better off as they will no longer be required to purchase annuities and they will be able to draw down on their pension without risking incurring charges.
There are many different types of pensions, including Personal Pensions, Final Salary Schemes, as well as several others. Some key features of a pension include:
Buying a Pension Annuity means that you are converting your pension fund into an income that will be paid for the rest of your life. A Pension Annuity is a Secured Pension because the income amount is guaranteed for life, unlike a Drawdown plan which is an Unsecured Pension (USP).
A Pension Annuity can be purchased with the entire pension fund that is available or it can be from funds after the tax-free cash (usually 25%) that you are entitled to has been taken. The amount of income you are entitled to will depend on the Pension Annuity rate at the time of purchase. The Pension Annuity and its terms are fixed at the outset whereas a Drawdown plan allows you to vary the income payments.
It has been one of the best decisions in my life to entrust my 40 years of pension contributions to The Pension Drawdown CompanyMarcus Sheldon - Broughton-in-Furness, Cumbria (Retired IT Manager)