The right choice for me? Annuities and income drawdown
When you come to open your pension pot, you can either:
- buy an income – an annuity – from an annuity
provider / insurancecompany
- keep your fund invested and take a regular income from your pot. This is known as income drawdown.
You can also choose to take all of your pension out as a cash sum and use it elsewhere. However, you will need to pay tax on the excess over the 25%
Tax treatment of the pension and the cash lump sum
You do not have to pay tax on the cash lump sum, as long as you do not take more than a quarter (25%) of your benefits or pot as cash. (The proportion may be higher if you have a protected lump sum.) The
What They Say About Us
if you have a mind-set like I had, bothered about your savings and investments because of past experiences I suggest you speak with Paul of PH7 Wealth Management and let him see what he can do for you.
Both myself and my partners value the advice and services offered by Paul and have always found his suggestions and explanations to be clear and concise. We’ve appreciated the fact that he makes the time to explain fully all the various options available and you always feel that he his is working in your best interest.
What I found excellent was Paul’s way of explaining a complicated procedure into layman terms. He made the whole process easy to understand and I felt that he made what was an involved process run smoothly.
PH7 Wealth Management.
Good financial planning is key to helping you achieve your future goals and aspirations, at PH7 We work with you on your financial journey ensuring you and your families’ long-term future objectives are secure.
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01282 479 930
PH7 Wealth Management Head Office
3rd Floor, Churchill House, 60 Bank Parade, Burnley, Lancashire