Income Drawdown/ASP

Income Drawdown / Alternatively Secured Pension

Income Drawdown is the facility which enables you to continue to keep your retirement savings invested, and take an income each year rather than buy an annuity. This facility can only be continued to age 75, at which time an annuity has to be bought, or the money must be transferred into an Alternatively Secured Pension (ASP).

The income that can be taken from a drawdown arrangement can be varied each year between a minimum and a maximum. The minimum is £0 and the maximum is 120% of a pension calculated according to tables produced by the Government Actuaries Department (GAD). These tables are based on the amount your fund would buy as an annuity based on your life only and with no allowance for any future increase. The maximum amount needs to be recalculated every 5 years.

A pension is a long term investment. Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.

Levels and bases of and reliefs from taxation are subject to change and their value depends on the individual circumstances of the investor.