What is Income Drawdown?

An income drawdown policy is a way of accessing your pension savings while your money remains invested and accessible. You can arrange your income to suit you, access tax-free cash when convenient and take advantage of valuable benefits for your dependents if you die.
 
Because your money remains invested you can continue to benefit from long-term investment growth. We recommend regular reviews to make sure your drawdown plan continues to suit your needs.

Income Drawdown

An Income Drawdown plan allows you to benefit from flexible access to your money so you can arrange your income to minimise or possibly even eliminate income tax.
 
our money remains invested so there are no guarantees, but you can take advantage of a wide range of investments to suit you.
 
Plus you still have the option to purchase an annuity with some or all of your plan at any time.

Why use BBi Financial Planning?

Chartered

Our advisers have obtained the highest level of qualification in UK financial services

Experienced

With decades of experience between them our advisers have seen it all.

Technology

We use the best tools available to make sure our research is as good as it gets.

Compliant

We invest heavily in expert compliance support to ensure our staff and processes are always under scruitiny.

Connected

We have relationships with tax and legal experts to provide you with a holistic support network.

Available

A service agreement with us means you will be able to speak to your chartered adviser. You won’t be stranded with someone else.

Benefits of an Income Drawdown plan

The benefit clients value most is the flexibility of income and the ability to access the fund. This is not possible with an annuity.
 
Income can be adjusted month to month, with ad hoc payments available as you wish. It’s flexible to take the tax-free cash too, so with careful planning you can reduce your income tax considerably.
 
Taking benefits from your plan does not prevent you saving into a pension either, although if you have taken income (as opposed to tax-free cash only) from your plan, the amount you can save to a pension drops to £4,000 per year.

Why choose BBi Financial Planning for income protection insurance?

Independent Advisers

We are proud of our independence.
It means no-one tells us what to do but you.
You can trust us to put your needs and goals first.

Chartered Professionals

We are a chartered firm and our advisers hold chartered status.
This puts us in the small elite number of firms in the UK, and means we uphold the highest standards.

Bespoke Cover

Our advisers will take the time to understand exactly what you need protected and why, and advise you on the most suitable options for your budget.

Is Income Dawdown right for you?

Flexible income

With an income drawdown plan you can take as much income as you like, as often as you like, until the funds run out.

Managing this is important to make sure you have enough to live on, and that you don’t pay more tax than you have to.

Access capital on death

If you die with money remaining in your plan, this can be passed on to someone else.

They can use this to continue drawing income, or save the money for their own retirement.

Remain invested for longer

The longer the investment term, the better the potential returns.
 
As healthcare and quality of life increases, people are living longer, which means you could still benefit from decades of growth after you retire.

What are the benefits of Income Drawdown?

Income drawdown policies provide the dual benefits of flexibility of income with the potential for further investment growth, but unlike annuities, the income is not guaranteed and will depend on investment returns and the rate of withdrawal.

Flexible income

Take income when it suits you

You don’t need to take an income if you don’t need to. Should you want to, you can set up regular income, take one-off payments, or even take it all out at once.

Just be sure you know how much tax you will pay, and what you will do for income once the money is gone.

Invest for the rest of your life

Extra-long term investing

Money in drawdown can stay invested if you want, just like your pension was when you were saving. Because you can leave this money invested even in drawdown, it can continue to grow for decades after you started your first pension.

Make sure you manage it carefully because returns are not guaranteed.

Phased drawdown

Manage your tax-free cash

Phased drawdown is a process which allows you to stagger your retirement benefits, combining tax-free cash and income (if you need income) in smaller increments.

This allows more flexibility in your financial planning.