3/7/2023 0 Comments Pension drawdownThese are schemes in which you contribute with no absolute guaranteed value. You may need to revert to the terms of your pension fund and how it is managed to clarify your situation.Ī flexi-drawdown pension arrangement is only applicable to defined contribution pension schemes, otherwise known as money purchase. To qualify for flexi-drawdown, you must be aged 55 or over. There are several conditions to consider, which include: Age It is essential to realise that not all pension schemes will qualify for a flexi-drawdown pension. Do all pension schemes qualify for a flexi-drawdown pension arrangement? However, there was also a subtle withdraw from the historic annuity link after rates sank to all-time lows. The pension regulations announced in April 2015 meant greater flexibility for pension fund holders going forward. The idea was simple, as you were already in receipt of more than £1000 a month pension income, you could tap into the additional funds as and when required. To utilise the flexible drawdown option, you would have to receive a pension income of at least £12,000 a year from other sources. Many people confuse the flexible drawdown option with the flexi-drawdown option these are very different. Under regulations at the time, the maximum annual income you could withdraw was no more than 150% of what you would have received if you had bought an annuity. However, the level of withdrawals was capped. There was a degree of flexibility with capped drawdowns regarding when and what you could withdraw from your pension.
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