Guaranteed Drawdown | Pension Drawdown Company

Guaranteed Drawdown

Life can be unpredictable, your retirement income doesn’t have to be

With many years experience of giving pension transfer advice we understand the importance of security, flexibility and choice. Guaranteed Drawdown can provide all three.

What is Guaranteed Drawdown?

Guaranteed Drawdown is designed for savers who are approaching, or who are in retirement. We think it gives you the best of both worlds – the certainty of income (like an Annuity or a Final Salary Scheme), plus the comfort of knowing that anything left in the plan gets passed on to your beneficiaries.

No matter how long you live, even if the value of your savings falls to zero, you can still retire without worrying whether market falls will adversely affect your retirement plans.

Pension Drawdown, also known as Income Drawdown and/or Flexi-access Drawdown is attractive to some because of its ability to retain assets within the estate and therefore enable wealth to be passed onto the family after their death. Pension Drawdown also offers the flexibility to take income when needed. However, with Pension Drawdown alone, investment risk and the potential to run out of money can be a worry. This is where Guaranteed Drawdown fits in.

As well as a secure income for life that won’t run out, Guaranteed Drawdown lets you choose when, how often, and how much income you take. You can access further funds for a one-off income top-up, although this will reduce your guaranteed income. There’s also the potential to benefit from market gains and investment growth through lock-ins of performance, which could increase your guaranteed income in the future. You can also make further pension contributions, to take advantage of valuable tax relief and give your guaranteed income an extra boost.

At a glance

Pension Drawdown with a guarantee:

  • Offers the peace of mind of a secure minimum income level - even if your fund drops in value
  • Lets you keep paying into your pension as long as you'd like (subject to certain annual limits)
  • Is a more involved option than an Annuity as you must take an active role in managing your pension
  • You can't be certain that your money will last to the end of your lifetime, unless you take a guarantee
  • Can pay death benefits from any remaining funds after your death, and or from guaranteed death benefits if you selected that option
  • Income and one off lump sum payments are taxed as income
  • Available as a single life policy that pays an income for your life only and the guaranteed income option is also available as a joint-life policy
Select a product for short description Annuity Guaranteed
Drawdown
Drawdown
Guaranteed income for life
Income protected from market falls
Fund remains invested - benefits from growth
Guaranteed lock-ins of growth
Income flexibility Limited
Death benefits Limited

How much does Guaranteed Drawdown cost?

A personal illustration will be provided with a quote detailing all the applicable charges, including our advice charge which is based on your personal circumstances and requirements.

Next Steps

Guaranteed Drawdown can be a more complex choice than a non-guaranteed option and we strongly recommend that you take financial advice before you apply. Please contact us for further information or an appointment.

Risk Warning exclamation mark icon

The value of investments and income from them may go down. You may not get back the original amount invested.

A pension is a long term investment, the fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of reliefs from taxation, are subject to change.

Taking withdrawals may erode the capital value of the fund, especially if investment returns are poor and a high level of income is being taken. This could result in a lower income when the annuity is eventually purchased.

Risk Warning exclamation mark icon

The value of investments and income from them may go down. You may not get back the original amount invested.

A pension is a long term investment, the fund value may fluctuate and can go down. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Information is based on our current understanding of taxation legislation and regulations. Any levels and bases of reliefs from taxation, are subject to change.

Taking withdrawals may erode the capital value of the fund, especially if investment returns are poor and a high level of income is being taken. This could result in a lower income when the annuity is eventually purchased.