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| Income Drawdown |
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| Wednesday, 01 July 2009 10:15 |
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Income drawdown is a facility that allows an individual aged between 50 and 75 to defer the purchase of their pension from an insurance company. An income is drawn from the fund, and the residual fund remains invested. HM Revenue and Customs are increasing the age to 55 from 6 April 2010.
The individual is able to choose to purchase the pension at the time when pension (annuity) rates are favourable. Income withdrawal is available to individuals who have a Stakeholder, Personal Pension Self Invested Personal Pension, or possibly who are members of an Executive Pension Plan or a Small Self Administered Pension Scheme.
This method might be advantageous in the current economic climate, as a means of releasing cash for business or personal use, rather than approaching the banks. |
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