Take control of your retirement income
Take a tax-free sum now and taxable income later
If you want to take the tax-free cash sum from your pension now but put off buying an annuity until later, income drawdown could be the answer. You can choose how much income to draw from your fund, subject to certain Government limits. You might want to choose income drawdown to help you manage your tax liability while you're still working; or because you have sufficient income from elsewhere, or because you want your pension fund to continue to have the potential for growth.
Income drawdown at a glance
- Take a tax-free cash sum as soon as you start the plan, if you want. If you don't, you lose the right to take the tax-free cash at a later date
- Keep the rest of your plan value invested until you buy your annuity
- Vary your taxable income and the funds you invest in
- Provide your spouse* or dependant with an income or cash lump sum (subject to Government rules) if you die before you buy your annuity
* includes husband, wife or registered civil partner
