Does Aviva offer flexible drawdown?
Take money from your pension as and when you want it. It’s a flexible way to take an income from the minimum retirement age – currently 55 – and keeps you in control.
Does Aviva do drawdown?
The Aviva Platform offers both single drawdown and phased drawdown through our Self-Select drawdown option. Tax-free cash lump sum with the remaining 75% invested to draw as an income.
How does a flexible drawdown pension work?
With flexi-access drawdown you can take up to 25% of your pension tax-free, as a lump sum or in portions. Once you’ve taken your tax-free lump sum, the rest of your pension pot can be left invested. This offers the opportunity for growth, unlike an annuity which provides a fixed income.
What is the best Flexi drawdown pension?
The best pension drawdown provider is Vanguard, scoring a top five stars in our independent ratings. Aviva, Interactive Investor and Close Brothers Asset Management also score well, each receiving four stars. You might want to read our simple guide on pensions.
How much can you take from a drawdown pension?
Pension drawdown rules mean that there are no limits on how much you can withdraw from your pension fund each year. You can take a tax-free lump-sum of 25% of your total pension pot up-front with your remaining pension savings left invested in your pension fund.
Are drawdown pensions a good idea?
However, income drawdown is really only suitable if you’re happy to leave your pension fund invested in the stock market so that it has a reasonable chance of growing. This makes income drawdown a high risk choice because the stock market can go up or down. You could end up with far less income than you’ve planned for.
Is flexible drawdown a good idea?
A key benefit of flexi-access drawdown is that your retirement savings stay invested even as you’re withdrawing cash from your pension pot. This leaves open the opportunity for investment growth, although it’s important to remember that your fund could go down as well as up in line with market performance.
What is the difference between capped and flexible drawdown?
A ‘capped’ (limited) income can be withdrawn from the fund. With flexi-access drawdown, after the client has taken the available tax-free lump sum which is normally 25% of the amount moved to drawdown, the remainder can be used to provide either a regular income and/or ad-hoc lump sums.
Is pension drawdown better than an annuity?
Pension drawdown is widely considered to be more flexible than an annuity, but it can carry greater risk. With pension drawdown you can move your money into one or more funds and adjust the amount and frequency of your withdrawals.
Is pension drawdown a good idea?
However, broadly speaking, pension drawdown could be a good fit for you if: You want your pension pot to stay invested and therefore still have a chance to grow even as you draw from it. You like the idea of continuing to manage and optimise your pension investments after retirement.