A particular situation where the deceased has reached pension age but has chosen not to buy an annuity that will provide their pension. Instead, they decide to 'draw' a certain level of income from the retirement fund with a view to buying an annuity at a later date.
Also referred to as pension fund withdrawal. This allows investors to delay buying an annuity and to take an income direct from their pension fund at retirement. Only advisable for pensioners with funds of at least £100,000 or other income.
Under this system, people with personal pensions can take money from their personal pension fund instead of using the fund to buy an annuity.
Also called pension fund withdrawal. This allows you to draw a taxable income from your pension, enabling you to delay purchasing an annuity until the maximum age of 75. Those planning to take up to 25% of their pension tax-free should do so before using the drawdown option.
This is when a member retires, but chooses not to buy an annuity straightaway. Until the member buys an annuity , they take an income from the scheme. This is also known as income withdrawal or a drawdown facility.
Enables people with certain types of pension plans to take income direct from their pension fund before age 75 (at age 75 the money must be used to purchase a pension Annuity).