FAQs

Currently, you can start an Income Drawdown plan from age 50 onwards, even if you’re still working. From 6 April 2010, the Government has increased the minimum age from 50 to 55. You must use the remaining value of your Income Drawdown plan to buy an annuity (or annuities) by age 75.

Making the right choice depends on a number of factors, including whether you have a spouse, civil partner or dependants; your attitude to risk; and your health. Remember, you don't have to decide until you are approaching the age you'd like to begin taking a pension income. You should certainly consider consulting a Financial Adviser.

You can choose to have your income paid:

• monthly
• quarterly
• half-yearly
• yearly
• in advance or arrear
• you can also take one-off withdrawals at any time subject to certain limits

Regular payments will be made direct to your bank or building society through the Bankers Automated Clearing Services Ltd. (BACS) system.

Any tax-free cash sum will be paid at the beginning of your plan.

The withdrawals you take from your plan are treated as earned income, and are taxable. We will deduct income tax from each payment before it is paid. Your Tax Office provides us with your tax code number, and tells us how much tax to deduct (having taken account of your personal allowances).

At the end of each year, you’ll get a P60 showing your income, and the tax deducted. You should keep this in case you have to fill in a tax return, or need to claim back tax from HM Revenue & Customs. Tax treatment depends on your individual circumstances and may be subject to change in the future. Tax rules can change.