Flexi Access Drawdown

Introduced within the Pension Freedoms Legislation in 2015, Flexi Access Drawdown allows policyholders the right to select a level of income of their choosing, with no upper limit.

Once the maximum tax free lump sum of 25% has been taken (otherwise known as Pension Commencement Lump Sum, or PCLS) then income withdrawals are subject to income tax at the policyholder’s marginal rate of tax. These income payments are added to the policyholder’s other sources of taxable income in order to determine the tax rate that is applicable.

Income withdrawals are entirely flexible, and can be changed at any time, giving policyholders the flexibility to change their income levels according to their changing circumstances.
Under Flexi Access Drawdown, pension funds remain invested, and therefore subject to investment risk, and our approach is to try to deliver the strongest possible investment returns but importantly within the level of risk that our clients are willing to accept.

Our approach is to formulate an income plan for our clients, and then to review this on an ongoing basis to ensure that it remains suitable for their requirements.