Income Drawdown

Under Drawdown Pension you can choose to take an immediate tax-free cash lump sum of up to 25% of the fund value.  The residual fund can then be used to provide you with a regular income or ad hoc withdrawals. Pension Freedoms rules allow you complete flexibility over how you access your residual fund. This can range from taking no pension income, to drawing the full residual fund. Remember withdrawals from the residual fund are subject to income tax at your marginal rate. Managing your income in retirement is extremely important, keeping your tax bill down and making the money fulfil your expectations. These can include things like, providing you with a pension income throughout your lifetime, a pension income for your spouse/partner following your death, maybe a pension legacy for children or relatives and inheritance tax planning.

Warnings!

A pension is a long term investment.  Your eventual income will depend on various factors, i.e. the size of your fund at retirement, future interest rates and tax legislation.  The value of your investment and the income from it is not guaranteed. It can go down as well as up due to fluctuations in investment markets, and you may not get back the full amount invested.

Levels and bases of, and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.

Taking withdrawals may erode the capital value of the fund, especially if investment returns are poor and a high level of income is being taken.  This could result in a lower income when the annuity is eventually purchased.

Annuity rates may be at a worse level when annuity purchase takes place.

The investment returns may be less than those shown in illustrations.

HCR have a dedicated team of Independent Financial Advisers (IFA) who can ensure you are receiving the right financial advice and the highest standard of service.