Flexible Drawdown

We are pleased to introduce that we have introduced Flexible Drawdown to our existing products. With a Self Invested Personal Pension clients can utilise a drawdown pension where they can choose how much pension they want to be paid each year (within limits). They can also change the amount they receive each year. The term drawdown pension replaces the terms unsecured pension and alternatively secured pension that were used before 6th April 2011. Clients can have their drawdown pension paid

  • Directly from your scheme (called income withdrawal)
  • From an insurance company using a short term annuity
  • As a mix of payments direct from your scheme and from a short term annuity

Income withdrawal comes in two forms – capped drawdown and flexible drawdown. In practical terms drawdown pensions can be paid one of more of three ways:

  • Capped drawdown
  • Flexible drawdown
  • Through a short term annuity

This is just a brief introduction to Flexible drawdown and for more information we advise that you contact us for our guidance notes which explains the rules for pensions put in to payment on or after 6th April 2011 and many other questions you may have.