When you want to make the most of the flexible aspects of your pension or have a more accessible way to release your funds, drawdown can be a great solution. But seek advice first!
The rules do change
As time moves on and pension rules change, so does the ability to enter drawdown. Today there is more flexibility than ever but with flexibility comes more decision making and more potential risk. However risk can be minimised with the right advice.
The main attractions
Flexibility is the buzz word here. You can decide how often and how much, you have full control. You can nominate anyone you like to receive the value of your drawdown when you die (*beware tax implications*). You can continue to invest your funds as you wish and you may still have the option to purchase an annuity.
Some things to consider
Sometimes freedom isn't a good thing! There are risks associated with your investment choices and you could lose money. Naturally there is the potential for your fund to run out quicker than you anticipated, if you don't have a controlled spending plan. Drawing down large sums can bring fairly heavy tax burdens.
We've got you covered
This is a very simplified explanation and there are many more things to consider. We would never advise going into drawdown without the support of a trusted, qualified financial adviser. We're experts and will make your choices and their implications clear, leaving you worry free to enjoy your money.
Come and see us
Stop by and let us answer your questions and understand what you’re trying to achieve. We won’t bombard you with jargon. We’ll get to know your circumstances, talk you through our Plan Happy process and discuss your options. This is completely free and there's no obligation for you to take it any further. Located in the North East, our offices are easy to get to if you live in Teesside, Tyne and Wear, County Durham, Northumberland or North Yorkshire. Call on 01642 044079 or drop us an email.