What is income drawdown?
The new pension freedom reform has given control of your pension funds back to you. The most flexible way to access your pension is income drawdown or pension drawdown. Income drawdown keeps your pension fund invested but allows you to take an income as and when you wish. You can convert it to an annuity at a later date or continue to stay invested and take an income. The assets can also be passed onto your estate without the 55% death tax from April 2015. Income drawdown isn’t right for everyone. Speak to a financial adviser about it’s appropriateness before making any decisions.