Flexible drawdown

Ted’s story – 65 years old

Ted is planning to help his daughter with her university fees. He’s planning to take his 25% tax-free allowance from his pension pot as a single lump sum. He can then leave the rest of his money invested and withdraw chunks as and when he needs them.

Ted’s full story

and has a . He intends to a month into it . After which he plans on taking his 25% tax-free lump sum of £17,500 so he can help his daughter pay for her university fees. The remaining £52,500 he’ll put into a flexible drawdown.

Flexible drawdown will allow Ted to leave his money invested so it has the potential to continue to grow. He could decide to take a regular income from it until it runs out, or withdraw money as and when he needs it. He could even use some of it to buy an annuity.

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