Re-investing funds designed to provide you with a regular taxable income
With this flexible retirement income option known as ‘flexi-access drawdown’, you can normally take up to 25% (a quarter) of your pension pot or of the amount you allocate for drawdown as a tax-free lump sum, then re-invest the rest into funds designed to provide you with a regular taxable income. You set the income you want, though this might be adjusted periodically depending on the performance of your investments. Unlike with a lifetime annuity, your income isn’t guaranteed for life – so you need to manage your investments carefully.
Taking money from your pension as and when you need it
You can use your existing pension pot to take cash as and when you need it and leave the rest untouched where it can continue to grow tax-free. For each cash withdrawal, normally the first 25% (quarter) is tax-free, and the rest counts as taxable income. There might be charges each time you make a cash withdrawal and/or limits on how many withdrawals you can make each year.
Without very careful planning, you could run out of money and have nothing to live on
You could close your pension pot and take the entire amount as cash in one go if you wish. Normally, the first 25% (quarter) will be tax-free, and the rest will be taxed at your highest tax rate by adding it to the rest of your income. Once you’ve taken all the money, your pension will close and you won’t be able to make any further payments into it.
Your home may be repossessed if you do not keep up repayments on you mortgage.
Will writing is not regulated by the Financial Conduct Authority.
Broadview Financial Services Ltd is an appointed representative of Quilter Financial Planning Limited and Quilter Mortgage Planning Limited, which are authorised and regulated by the Financial Conduct Authority. Quilter Financial Planning Limited and Quilter Mortgage Planning Limited are entered on the FCA register (http://www.fca.org.uk/register/) under reference 440703 and 440718.
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Broadview Financial Services 06315455 - Incorporated on 17 July 2007. The registrar of Companies for England & Wales.
Registered Office: St Peter's House, St Marys Wharf, Mansfield Road, Derby DE1 3TP