Pension Withdrawal Advice

At Simpson Wood, we’re committed to guiding you through the complexities of pension withdrawal, ensuring you make the most informed decisions for your financial future. Did you know that you can, in general, start withdrawing from your personal pension at the age of 55? However, there are instances, such as specific health conditions or certain pension types, where you might be eligible to withdraw earlier.

Maximising Your Tax-Free Lump Sum

For those pondering “Can I withdraw my pension without incurring hefty taxes?” our team is here to help. We can assist you to strategically take up to 25% of your pension as a tax-free lump sum, while carefully navigating the tax implications on the remaining amount. Our goal is to help you avoid unnecessary hikes in your tax bracket.

Need Some Advice?

Looking for some help or a little advice?

Call today on 01484 534431 or fill in our enquiry form below, and we’ll call you back.

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Choosing the Right Withdrawal Type

Whether you’re contemplating an annuity purchase for a guaranteed lifetime income, opting for drawdown funds for flexibility, or considering cash withdrawals, Simpson Wood provides expert advice. We’ll discuss each option’s pros and cons, including tax on pension withdrawal and investment risks, to find the best fit for your needs.

Balancing Investment Risks and Rewards – Keeping your pension invested can
be a double-edged sword. We’re here to help you understand how market
fluctuations can impact your pension fund and how to balance risk with
potential rewards.

Comprehensive Retirement Planning – Before withdrawing from your
pension, we’ll help you consider all your retirement income sources, to ensure
a financially secure future.

Navigating Post-Retirement Scenarios – Understanding the implications of
death and pension funds is vital. We’ll explain how your pension can be
efficiently managed or passed on to your beneficiaries, depending on your age
at the time of death.

Avoiding Early Withdrawal Pitfalls – Withdrawing a pension before 55
can lead to significant financial repercussions. Our team is here to advise you
on the legalities and financial implications of early withdrawals.

Drawdown Pension

What is a Drawdown Pension?

Simply put, a drawdown pension, also known as pension drawdown or flexible retirement income, is a method that allows you to withdraw money from your pension pot to support your lifestyle during retirement. It offers a flexible alternative to purchasing an annuity, and here’s how it works.

How Pension Drawdown Works

In a pension drawdown scheme, your money remains invested, and you can take a regular income directly from the fund. This approach allows your pension fund to potentially grow over time, possibly increasing your retirement income. However, it’s important to note that the value of your income could decrease if investments perform poorly.

Tax Implications and Flexibility

When it comes to the pension drawdown rules, typically, you can take up to 25% of your pension pot as a tax-free lump sum, while the remaining 75% is taxable as income. This flexibility in accessing your pension is a key advantage. There are no limits on how much you can withdraw each year, which means you have the freedom to choose a regular income or withdraw amounts as needed. However, careful management of withdrawals is crucial to avoid depleting your pension fund prematurely, and we can reduce the tax burden each year by careful financial planning.

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Established 1880

Our Team of

50+ Staff

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Businesses & Individuals

The Importance of Expert Advice with Simpson Wood

Navigating the complexities of the best drawdown pension schemes can be challenging. At Simpson Wood, we place immense value on the importance of expert advice in this process. Our team of dedicated professionals is equipped to provide you with independent and bespoke financial guidance, tailored to your unique situation.

With Simpson Wood, you’re not just getting advice; you’re gaining a partner who understands the intricacies of pension drawdown rules and the nuances of flexible retirement planning. Our commitment is to ensure that your pension strategy aligns with your long-term financial goals, helping you navigate the retirement landscape with confidence and security.

If you would like to discuss planning for your retirement, please contact us.

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