Drawdown & Annuities
When you retire, deciding how to access your pension savings is one of the most important financial decisions you’ll make. You have two primary options: a Drawdown Plan or purchasing an Annuity. Each offers different benefits, depending on your circumstances and preferences for managing your retirement income.
How It Works
Drawdown Plan
A flexible way to access your pension savings while keeping the rest invested. You can take income as needed while your remaining savings continue to grow. However, the value of your investments can go down as well as up, meaning your income isn’t guaranteed.
Annuity
An annuity provides a guaranteed income for life. Once purchased, the annuity will continue to pay you a set income, no matter how long you live, offering security and peace of mind.
Our team will help you assess your options and make the best choice based on your financial situation, lifestyle, and retirement goals.
Key Benefits
- Drawdown: Flexible access to your pension savings, with the potential for growth.
- Annuity: Guaranteed income for life, providing financial security.
- Expert Guidance: We help you navigate your options to make the most informed decision.
The value of a pension with St. James’s Place will be directly linked to the performance of the funds selected, and the value can therefore go down as well as up. You may get back less than the amount invested.
The levels and bases of taxation and reliefs from taxation can change at any time and are dependent on individual circumstances.
`Income drawdown’ will reduce the size of your pension fund and the investment growth may not be sufficient to maintain the level of income you wish to draw. If you withdraw money at a rate greater than the growth achieved by your investments, your remaining fund will reduce in value. The level of income you take will need to be reviewed if the fund becomes too small – this is more likely the higher the level of income you take. The income you receive may be lower than the amount you could receive from an annuity, depending on the performance of your investments. As annuity rates can change substantially and rapidly, there is no guarantee that when you do purchase an annuity the rates will be favourable. This could mean that your pension thereafter may be less than you hoped for. The rules governing how much income you can take directly from your pension fund may change. This could mean that the income you can take from the investment no longer meets your requirements.
Book a Meeting
Book a no-obligation consultation meeting with our financial advisors today.
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Tuesday 9 am–5 pm
Wednesday 9 am–5 pm
Thursday 9 am–5 pm
Friday 9 am–5 pm