Use flexi-access drawdown to provide a flexible retirement income

Flexi-access drawdown allows you to take an income directly from your pension pot as and when you need it, leaving the remaining funds invested for growth. You can choose the level and timing of your income, there is no limit other than the total value of your pension pot.

As you move into drawdown, you can take an initial tax-free cash sum of up to 25% of your pot.There is no minimum income requirement, so you could just just take your tax free cash lump sum, and leave the rest untouched.

You then move the remainder of your pot into funds based on their income and investment objectives, as well as your attitude to risk. The funds you are invested in should be periodically reviewed to ensure that your investments continue to be appropriate.

When you die, your beneficiaries will have the flexibility over how they receive the benefits from your pension pot. For example, they could choose to continue with flexi-access drawdown, or use the remaining pot to buy an annuity.

Flexi-Access Drawdown

Advantages	Disadvantages
More flexible than an annuity, keeping your options open	Income is not secure. The income and the value of the investments could fall or even run out
You keep control of your pension pot and the funds it is invested in	More complex, needs regular review and may require advice
Flexible death benefits	Depending on how long you live, and performance of the funds, the money may be insufficient to support prolonged retirement or death benefits
You do not have to take an income but if you do you can change the amount of income you receive to suit you	An annuity may offer better long term value for money
Potential for growth, increasing income and protection from inflation	Potential for poor performance. Reduction in value if markets fall
	May incur high charges

Drawdown is not suitable for everyone, so you should seek advice about its suitability for you.

You can get guidance to help you understand your pension options from pensionwise.gov.uk, a free and impartial Government service.

Regulated Financial advice can also be sort to help you decide how to take your pension. At Wesleyan we're here to help, our Wesleyan Financial Services Consultants can help you to find the solution that's right for you.