Making the most of pension drawdown
Following the introduction of a number of reforms to the pension regulations this April, it is no longer compulsory to buy an annuity by the age of 75, which means that individuals can stay in drawdown until their death. Furthermore, savers now have a choice of capped or flexible drawdown, depending upon their annual income.
Under the latter option, anyone over the age of 55 who will receive at least £20,000 annually can drawdown unlimited amounts from their pension. However, if they take their complete pension fund as a lump sum, only the first 25 percent will be free from tax.
If you have any questions about your pension please contact Paul Smith or Richard Mills at Watson Buckle Wealth Management on 01274 516700.
