If you are considering Pension Drawdown as a viable option for your retirement, you’ll need to know the advantages and disadvantages before making your decision…
Pension Drawdown – Advantages
- Access to tax-free cash immediately
- Flexibility to vary your income according to your requirements
- Control the level of income tax you pay
- Control of your investment
- Funds benefit from investment growth in a tax-efficient environment
- Choice not to purchase an annuity
- Option to take unlimited amounts
- Choice of death benefits for dependants
Pension Drawdown – Advantages
- Future investment returns are not guaranteed
- High withdrawals of income may not be sustainable
- The higher the level of income withdrawal chosen the less that may be available to provide for dependants
- Increased flexibility brings increased administration costs
- Level of income could change due to investment/ fund performance
Warning: The value of investments can fall as well as rise and you may get back less than you originally invested.
