So your future annuity payments are known in advance. How does it differ from other options?Ī standard conventional or enhanced annuity provides guaranteed payments for life, no matter how long that is. This option can be useful if you want to keep your options open for the future, especially if you anticipate a change in your circumstances. On death after 75, the lump sum or income is taxed at your beneficiaries' marginal rate. In the event of your death, it also gives you the ability to pass on your fund to your spouse, the next generation or to whoever you want, tax free before age 75. You can take regular income or irregular income from your fund and even postpone your income should you wish. You are able to take 25% as tax free cash, with the balance being treated as taxable income. Any references we make to taxation are based on our understanding of current legislation and HM Revenue & Customs practice which can change.įlexi-access drawdown is a form of personal pension that enables you to take an income directly from your pension fund, keeping it invested, without having to buy an annuity, hence you retain control of your pension fund and therefore your investments. This Q&A document should be read in conjunction with the Key Features Document (KFD) relevant to the provider of your flexi-access drawdown, their quotation and any other documentation they refer to. Your questions answered flexi-access drawdown
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