by Chris Carter | Aug 6, 2024
When choosing an income drawdown strategy, consider the following factors: Retirement goals: Define your financial goals and how income drawdown fits into your overall retirement plan. Withdrawal rate: Determine a sustainable withdrawal rate that balances your income...
by Chris Carter | Aug 6, 2024
To make your income drawdown tax-efficient, consider the following: Personal allowance: Withdraw amounts that keep you within your annual personal allowance to minimise tax. Tax-free lump sum: Take advantage of the 25% tax-free lump sum available from your pension...
by Chris Carter | Aug 6, 2024
While income drawdown offers flexibility, it also comes with risks: Investment risk: The value of your pension pot can go down as well as up, depending on the performance of your investments. Longevity risk: There’s a risk of outliving your pension pot if...
by Chris Carter | Aug 6, 2024
Income drawdown allows retirees to withdraw money from their pension pot as needed, rather than purchasing an annuity. This method provides flexibility by: Control over withdrawals: You can decide how much and when to withdraw funds, allowing you to manage your income...
