Pension Drawdown Advice

Q: How does pension drawdown work?

From the age of 55, depending on your pension provider, you should be able to take up to an initial 25% of your pension pot tax-free. Many people love the flexibility of taking their money when they need it, but how does pension drawdown work?nnYou can take your pension at any time over the age of 55. Still, careful consideration needs to be taken to ensure you don’t run out of money early. Taking an initial 25% tax-free could be a good idea to pay off any debts like credit cards, mortgages or car loans to help you become debt-free when you retire. With drawdown, you can make single or set up regular withdrawals as and when you like, of course, providing you still have money invested, make sure you know about all the pension drawdown rules before rushing into anything.nnThe rest of your funds will remain invested, so have the potential to grow, but also the potential to lose money in a market crash.nnWith drawdown, it’s advisable to speak with a Hilltop retirement planning expert who can put together a robust plan on how to take your money and help alleviate the chances of running out of funds.

Q: How do I apply for pension drawdown?

Following a review with our advisors, if drawdown is recommended, we will send you a couple of simple forms to sign and we can set up the pension drawdown options for you.

Thinking about taking your pension money flexibly but not sure how or whether it’s right for you? Life is full of unexpected twists and turns but our pension experts can help work out a pension drawdown plan that has you covered in both the short and long term.

Call us now on 0161 413 7051 or arrange a call back.

Important information: Our website offers information about investing and saving, but not personal advice. If you’re not sure which services are right for you, please request advice from Hilltop’s financial advisers. Remember that investments can go up and down in value, so you could get back less than you put in.

Pension Drawdown Providers

From the age of 55, depending on your pension drawdown provider, you should be able to take up to an initial 25% of your pension pot tax-free. Many people love the flexibility of taking their money when they need it, but how does pension drawdown work?

You can take your pension at any time over the age of 55. Still, careful consideration needs to be taken to ensure you don’t run out of money early. Taking an initial 25% tax-free could be a good idea to pay off any debts like credit cards, mortgages or car loans to help you become debt-free when you retire.

With drawdown, you can make single withdrawals or set up regular withdrawals as and when you like, provided you still have money invested. Make sure you are aware of all the pension drawdown rules before rushing into anything, or if you would like to learn more, just follow the link to our in-depth article on what pension drawdown is and how it works.

The rest of your funds will remain invested, so have the potential to grow, but also the potential to lose money in a market crash.

Hilltop Finance is an expert pension drawdown provider. If pension drawdown interests you, then we can help! It is advisable to speak with a member of our team who can put together a robust plan on how to take your money and help alleviate the chances of running out of funds. Contact us today!

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Things to think about…

You need to carefully plan how much income you can afford to take if you’re thinking of taking your money flexibly otherwise you could risk running out of money. This could happen:

You live longer than you’ve planned for. The average UK male lives to 79 years and female to 82 years according to the Office of National Statistics

You take out more money in the early years than you’d planned for

Your investments haven’t performed as well as you’d hoped

You have unexpected health issues and bills

It can be difficult and complex to prepare for your retirement but our advisers can help using their expertise and knowledge. Once you retire, our advice doesn’t need to stop. We can continue to monitor your pension funds and make sure they are in the most suitable place for you.

What to expect

Expert advice in three simple steps

We’re committed to going the extra mile, holding your needs and requirements at the centre of our trusted advice. Everybody is different, and the financial advice we deliver reflects that. Our professional advice is always relevant, personalised and tailored to you.

Get in touch

Give us a call on 0161 413 7051 or let us know when you’d like us to call back. A friendly pension professional will discuss your enquiry to get a better understanding of your situation.

Analyse and report

As soon as you give us authority to work on your behalf, our team will get started analysing your pensions to produce an in-depth report and assess against the market.

The choice is yours

Your expert pension adviser will deliver their assessment and ensure you fully understand the advice given. Now you will be able to make informed decisions.

Arrange a callback

or call us now on 0161 413 7051

Pension Drawdown Advice

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Talk to us

Pop the kettle on and give us a call

Even after you’ve done your research, you’ll probably still have some questions. Why not give one of our friendly team a call and explore whether financial planning advice might be right for you.

Call now on 0161 413 7051
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Mon to Thurs 9am – 5pm and Fridays 9am – 4pm

Or arrange a callback

Frequently asked questions

Have a look over our frequently asked questions, and if you can’t find what you’re looking for simply get in touch with our friendly team who are here to answer any questions you might have.

You could drawdown from a personal pension from your 55th birthday. In some circumstances i.e. ill health, your pension provider may allow you to take money from your pension, but this is at their discretion.

Capital at Risk

Yes, any income taken from your retirement fund will be classed as income. The first 25% of the value of your pension fund is classed as tax-free, any further withdrawals would be subject to your income tax rates.

Tax treatment depends on the individual circumstances of each client and maybe subject to change in future.

Withdrawals up to the first 25% of your pension fund value is tax-free, this could be in one lump sum. Any further withdrawals would be subject to income tax, the same as your regular salary income.

Tax treatment depends on the individual circumstances of each client and may be subject to change in future.

You can withdraw the total amount that is held in your personal pension from your 55th birthday, subject to any restrictions from your pension provider. But, always remember that these funds could be your only source of income in later life.

No, not all pensions offer the flexibility of pension drawdown, and it’s always advisable to speak with a financial adviser to find out if your policy offers flexible drawdown.

Capital at Risk.

Not all pension plans offer drawdown, so it is worth checking with your provider or advisor to find out. If drawdown is available, it can take around three to four weeks to set a plan up.

Following an assessment with our advisers, if drawdown is recommended, we will send you a couple of simple forms to sign and we can set up the pension drawdown options for you.

Pension Drawdown is a flexible way to take your pension benefits (take funds from your pension). Whether that’s on an ad-hoc basis, regular month payments or a cash lump-sum. Always check the fees your provider will charge to facilitate your drawdown plans, as each provider will charge differently, and this could apply to the frequency of withdrawals.

Pension Drawdown isn’t like taking money from a bank account. Your pension funds remain invested, so potentially every withdrawal will mean your provider will need to dis-invest your money, before forwarding you the sum. This could take a short period of time.

To learn more, read our in depth guide on how pension drawdown works.

Pension providers could charge fees for withdrawing funds from your pension, so it’s worth checking the rates before agreeing to drawdown with certain providers. With most of the pensions we recommend there are no additional charges for drawdown pensions.

For more information, read our in depth guide on pension drawdown charges.

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