Income Drawdown Plan

A flexible way to control the level of income you receive when you retire. Draw as much or as little as you like from your retirement fund, leaving the remainder invested to potentially carry on growing. A useful way to manage your income according to your retirement and tax planning needs.

With no plan set-up fee or ongoing service charge, the charges you pay simply depend on the funds you invest in and how often you change the level or frequency of income you receive.

The LFS Income Drawdown Plan offers a wide range of risk-rated funds and even allows you to pass on your pension fund tax-free when you die, in some circumstances.


Income Drawdown Plan:

Key features:

  • Take up to 25% of your pension fund as tax-free cash
  • Taxable income payments to suit your needs (on a regular or ad-hoc basis)
  • Benefit from any potential future investment growth
  • Choose where to invest from a range of portfolios
  • Pass on your savings tax-free if you die before age 75.

Eligibility:

  • Are aged 55 or over (or eligible to take your savings earlier)
  • Have at least £25,000 to invest after taking your tax-free cash and paying adviser fees.
richard.jpg

Philip manages his retirement income to minimise tax

Philip has a pension fund of £120,000. He wants the flexibility to manage his retirement income so that he doesn't start paying higher rate income tax. He sets up LFS's Income Drawdown Plan that allows him to choose a certain level of income. If he needs to, he can top up his income by taking ad-hoc payments. His financial adviser monitors his investment funds to make sure they're on track to continue providing an income for the future.

This example is for illustration only. It should not be taken as advice.


Income Drawdown Plan

Is it right for you?

The Income Drawdown Plan may be right for you, if you:

  • Want flexible income payments
  • Want to keep your retirement savings invested
  • Are willing to take the risk that your savings could decrease
  • Understand that your income and savings are not guaranteed.

richard.jpg

Philip manages his retirement income to minimise tax

Philip has a pension fund of £120,000. He wants the flexibility to manage his retirement income so that he doesn't start paying higher rate income tax. He sets up LFS's Income Drawdown Plan that allows him to choose a certain level of income. If he needs to, he can top up his income by taking ad-hoc payments. His financial adviser monitors his investment funds to make sure they're on track to continue providing an income for the future.

This example is for illustration only. It should not be taken as advice.


Income Drawdown Plan

richard.jpg

Philip manages his retirement income to minimise tax

Philip has a pension fund of £120,000. He wants the flexibility to manage his retirement income so that he doesn't start paying higher rate income tax. He sets up LFS's Income Drawdown Plan that allows him to choose a certain level of income. If he needs to, he can top up his income by taking ad-hoc payments. His financial adviser monitors his investment funds to make sure they're on track to continue providing an income for the future.

This example is for illustration only. It should not be taken as advice.


Ready to apply?

The first thing to do is speak to your financial adviser. They will help you decide whether the plan is right for your personal circumstances. They will also help you through the application process. They may charge for their time.
Find a financial adviser

Find a financial adviser

You can find an FCA authorised financial adviser at www.unbiased.co.uk or by calling 0330 1000 755, or you can visit the YourMoneyAdviser website at www.findanadviser.org and key in your location to find an adviser near to you.

You cannot apply directly to LFS for this plan.

Use Pension Wise

Use Pension Wise

Pension Wise is a government service that offers people approaching retirement free, impartial guidance about how to make best use of their pension savings.

www.pensionwise.gov.uk 
030 0330 1001

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