Income Drawdown option
You don't have to buy an annuity as soon as you retire - you can choose to keep your money invested and take an income in the meantime through Income Drawdown (also sometimes referred to as taking an 'unsecured pension' or 'pension fund withdrawal').
Our Income Drawdown option is part of our Flexible Retirement Plan and gives you the opportunity to receive money from your pension fund, until you are ready to buy your annuity. It is generally for people with larger funds or other sources of retirement income that may be willing to take a higher degree of risk. For this reason, it is only available through a financial adviser.
The minimum investment we can accept is £37,500, after any tax-free cash has been taken, but this can vary depending on your circumstances so it's best to discuss with your adviser.
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- Allows you to delay buying your annuity up to age 75, but still receive some income in the meantime.
- Gives you the flexibility to vary how much income you take and when you take it (within limits set by the government).
- You can pass your pension fund on to your dependants if you die, subject to certain conditions.
- Offers you a wider choice of where to invest your money through our range of funds.
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- If investment returns are poor and a high level of income is taken, the value of your pension fund may be significantly reduced. This could result in a lower income in the future as you will have less to buy an annuity with.
- The amount of income you are allowed to take - your 'income limits' - must be reviewed every five years and can go down as well as up after each review.
- The rates used to calculate your annuity have the potential to worsen as well as improve.
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We are the number one provider of annuities in the UK.* Over one million people rely on us to pay their pension every year and in 2009 more than 100,000 people chose to buy their annuity with us.
Find out about the wide range of annuities we offer and why choosing an annuity with us makes sense.
*Source: Company New Business Press Releases 2010
To find out more
- Learn more about how to make the most of your financial adviser or if you don't have one, how to find one.
- Read more about our Income Drawdown option by referring to it's brochure , key features or case studies
Our Income Drawdown option forms part of our Flexible Retirement Plan which is only available through financial advisers.
