Flexibility

Income security, growth and flexibility. There is the potential for income growth, but no guarantee, and your income could fall. You decide how much income to take, with none of the GAD limits on maximum income that apply to income drawdown. You decide when to convert the remaining value of the personal pension plan into an annuity, sometime before your 75th birthday. This gives you the opportunity to take advantage of any favourable change in annuity rates or to “lock in” any growth in the value of the investment funds within your personal pension plan.

Investment flexibility. Your remaining pension fund can continue to grow within the tax efficient environment of a personal pension plan, with no restrictions on fund choices, other than the limitation of the range of your provider's investment funds.

Death benefits and inheritability. You don’t have to decide immediately on how to provide for your spouse. For example, if you die before converting all the pension fund into an annuity, your spouse can potentially receive bigger benefits than if you had simply converted the whole pension fund to an annuity the day you retired.

Tax efficiency. It may be possible to keep the total income within the basic rate tax band. Also, part of the chosen “income” is made up of tax-free cash, part is made up of annuity income, so it isn’t all taxable. The remaining fund can fall outside your Estate, with an appropriate trust attached.

May i take this opportunity for thanking you for looking after my interests. I couldn't have asked ...
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