One way of taking your pension pot a bit at a time is to take your tax-free cash up front - and then you can take the rest of your money bit by bit over time or leave it invested for the time being if you want.
So you take your 25% tax-free cash at the start, and move the remaining 75% into a separate account. Then, each time you take money out of that account, you’ll pay tax on the full amount of each lump sum.
This method of taking your pension pot a bit at a time is often called ‘flexi-access drawdown’.
The People’s Pension flexi-access drawdown account
Different providers have different rules around ‘flexi-access drawdown’.
To take this option with The People’s Pension, you need to have more than £10,000 in your pension pot with us to get you started.
And with us, you must take the full 25% tax-free cash to begin with.
Plus, the rest of your pension pot must be moved into a flexi-access drawdown account – it’s not possible to move just part of it.
You’ll need to carefully plan your withdrawals each time you make one. Our flexi-access drawdown account isn’t designed to provide you with a regular income.
And the money in your flexi-access drawdown account will continue to be invested, under the same investment settings as your pension pot with us.
So, as with every investment, the value of your flexi-access drawdown account can go up and down. And it’s important that you regularly review how your money is invested to make sure the selection is right for you.
How does it work?
How do I access my flexi-access drawdown account?
Once you’ve set up your flexi-access drawdown account, you’ll be able log in to your Online Account to check your balance.
And you can make withdrawals through your Online Account too. You’ll just need to fill out an online form to request a lump sum from your flexi-access drawdown account.
Or you can give us a ring – you don’t have to do it online if you don’t want to.
How many lump sums can I take?
How much can I take at a time?
Why have we set up our flexi-access drawdown account like this?
What if I want to continue saving as well?
What happens to the money in my flexi-access drawdown account if I die?
Can I mix this option with other ways of taking my pension pot?
Comparing with other providers
What are the risks?
How do I choose this option with The People's Pension?
|All your options at retirement||Keep your money where it is||Take it all in one go||Take it a bit at a time||Buy a guaranteed income or 'annuity'|
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Where to get guidance and advice
Retirement planning = big decisions
Find out where to get help (our website, Pension Wise or LV= to name but a few).