When you reach retirement you have a number of options. Two of the most popular ways are to purchase an Annuity or enter into Flexi-Access Drawdown. Either way you can take up to 25% of your fund as a tax-free cash lump sum.
When Can I Take Income?
When using Flexi-Access Drawdown you can take income as and when you need it. There are no limits on the amount of income you can take. Also, you are not obliged to take any at all if you do not need it.
You do not lose the right to purchase an Annuity and are no longer obliged to purchase an Annuity in the future either. For more on Annuities, please click here.
Potential Advantages of Flexi-Access Drawdown
Flexi-Access Drawdown enables you to defer the Annuity option for as long as you wish. This means you don’t need to make an immediate decision about spouse’s, civil partner’s or dependent’s benefits.
You can vary income to meet your personal requirements and manage your tax situation.
If you eventually purchase a lifetime Annuity, there is a possibility that you canbenefit from a higher annuity rate. This can be either through a general increase in rates or simply by the member now being older.
Death benefits are flexible in format. These can be left to a wide range of beneficiaries.
There is the potential to benefit from investment growth of the underlying fund.
Potential Disadvantages of Flexi-Access Drawdown
If you did decide to purchase an Annuity in future, you could find that Annuity rates have decreased.
The fund may reduce in value due to poor investment performance.
The fund may be eroded due to investment returns not keeping pace with the level of income withdrawals.
For this reason, we always recommend that Flexi-Access Drawdown schemes are reviewed at least annually.
If you would like to look at the other options available for retiring soon, please visit our Pensions page.
Would you like to find out more information on Flexi-Access Drawdowns?
I have been delighted with the friendly, professional and personal service I receive from Choice Financial Solutions. It was particularly important to me after a significant change in personal circumstances to have the confidence that I was getting expert advice from someone who knew me and the family and could tailor solutions to best fit with us. The yearly meetings with John are very valuable as it is important to me that I can get advice from someone I trust and know I can reply on, and on the occasions where I have contacted John with a query or concern I have always had a prompt and efficient reply… That is why I am still a client!
Sarah SEast Wellow
Excellent service from start to finish.
AndrewHavant
We have been using Choice since they started business. John Quaif is always clear and honest, qualities that have endeared him to us. If there is an issue he’s quick to deal with it and does so having full regard for the client’s perspective. In a way that’s an even more powerful confirmation of the principles underpinning the company. John took over management of our pensions and rapidly kicked things into shape, so we are indebted to him! The review sessions are always well prepared and informative. And the up to date market information is always fascinating! So far, John has managed to preserve the personal touch despite the growth of the company. This is certainly important to us.
PaulSouthampton
First class service from John Quaif. Proactive, responsive and professional at all times.
Eric WTunbridge Wells
Thank you for the recent visit and the advice that you provided. It is reassuring to see that the money we have invested is working for our future needs. We would like to express out thanks for your work on our behalf over the past few years. Choice Financial Solutions have provided an excellent professional service and clearly have their clients’ interests at heart.
David & DebbieKent
Very happy with the friendly service. Good to have meetings at home, making it more comfortable. Felt at ease with the whole process. Thank you!
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A very professional and helpful service. Extremely responsive and excellent at keeping us up to date. There is no pressure when discussing the various investment options and definitely customer focussed.
Bruce MBrockenhurst
Excellent service from John Quaif and the team. I would not hesitate to recommend.
Julie GIsle of Wight
We have always been listened to and our wishes met. Our investments are long term and give reliable performance.
Alan ESouthampton
15 years of excellent service and counting.
Jim BChandler’s Ford
Outstanding service and great attention to detail has left me feeling very confident and secure in relation to my financial planning. Highly recommended.
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Reliable, prompt and trustworthy.
Jeremy GBrighton
Excellent service - always.
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In a complex and difficult market we feel we are in safe hands.
Robert NSouthampton
Excellent service.
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Having had interaction with several financial services companies over a number of years, it’s reassuring to find a trustworthy and diligent firm which really delivers a great service, not just the statutory minimum, but genuinely informative reporting and advisory communications. My returns have been better than expected and I feel that, as the client, I’m actually more important than simply their percentage. Well done Choice and John Quaif.
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Good, professional service, straightforward with no frills or hidden charges. Recommended.
Antony BSouthampton
I have worked with John at Choice for many years, and always found him to be wonderful to deal with. Nothing is ever too much trouble and the help and guidance received has always been way above what I expected.
Tony DBournemouth
Choice Financial Solutions were extremely helpful and informative at every step of my dealings with them.
