An option for gradual retirement

Phased income drawdown is a combination of your income and tax free cash which is then used to provide you with an overall income. By having a phased income drawdown, only the necessary amount will be taken from your personal pension to be converted into an overall income with the remainder of your fund staying invested under your personal pension plan. There are many benefits from choosing this type of income drawdown, here are just a few:

  • By having a phased income drawdown, you then have the full ability to maximise your death benefits. In the event of your death, according to pruadviser your personal pension element will not be subjected to the 55% tax payable on the drawdown element.
  • The unused tax free cash can then be withdrawn at any time during your contract, but will also benefit from any future growth on your personal pension fund.
  • It will keep more of your initial funds in a tax efficient environment as well as you gaining a tax efficient income. A tax efficient income refers to the part tax free cash that you will be subjected to.
  • One of the biggest benefits of a phased income drawdown is that it is ideal if you wish to retire gradually therefore having the option to keep working and earning as you come closer to the age of retirement.

If you’re thinking of retiring slowly and wish to keep up your job while still having a secure retirement plan, contact annuity marketplace today to find the best rates on phased income drawdown in the UK.


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