He explains: “It is potentially well suited for customers with smaller pension pots seeking to withdraw their funds in a tax-efficient way.”Īlso, as John Lawson, head of financial research for Aviva points out, there is the ability to pass on money at death tax-efficiently. ![]() Using flexi-access drawdown can help customers to minimise tax liabilities, Mr McKie added. He adds: “Overall, flexi-access drawdown is a better fit for modern retirement where income is usually supplemented by other sources.” Mr McKie says while capped drawdown can meet many of these needs, as well as maintaining an upper limit on withdrawals which could help people manage their money better over a longer time, he says flexi-access drawdown is a “better fit” for modern retirement. “This can be particularly helpful for managing unexpected events or changing life circumstances.” Rod McKie, head of retirement proposition for Zurich, comments: “This gives people complete flexibility over how they get, and draw down from, their pension savings. ![]() ![]() It is really important to balance the benefits of flexible withdrawals with a sustainable income strategy that will last in retirementĪccording to Mr Kingston: “The freedom given by flexi-access drawdown means a pension fund can simply be operated with the same principles as a savings account or other investment.”
0 Comments
Leave a Reply. |