Managing Your Money 

Pay less tax when taking income drawdown

Pay less tax when taking income drawdown

Drawing money flexibly from your pension, known as income drawdown or flexi-access drawdown, allows you to take up to 25 per cent of your pension pot tax-free from age 55 onwards, and to either draw down the remaining 75 per cent as taxable income or keep it invested for later access. For example, an investor with a fund of £100,000 could take £25,000 as a tax-free lump sum and access the remaining £75,000 as drawdown when they like.

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