The People’s Pension flexi-access drawdown account
One way of taking your pension pot a bit at a time is to take up to 25% of your pot as tax-free cash usually, but you don’t have to take it all at once. You can leave some of it invested to carry on growing meaning you might get more tax-free cash later on. When taking your tax-free cash up front, either a bit at a time or in one go, under HMRC rules, for every £1 you take as tax-free cash, £3 moves to your 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, or £2,000 if you’ve taken money before.
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?
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'