QROPS Direct Logo

What Is SIPP Flexible Drawdown


Pension Freedom

Flexible Drawdown gives you control over the amount of taxable income that you take, unrestricted by the government defined limits. This year, HMRC removed restrictions on the requirements you need to meet to request Flexible Drawdown. Prior to April 2015 you would need to meet certain criteria including being in receipt of guaranteed pension income of at least £20,000. This could be state pension, pension annuities or final salary pension income, but cannot include any non-pension income.

From April 2015 HMRC scrapped these requirements and now permit pensioners to drawdown their entire pension pot. However, the downside is that you would have to pay income tax on the flexible drawdown amount at your highest marginal rate.

Once in flexible drawdown you are effectively prevented from making any further pension contributions or building up any further pension benefits in final salary pension schemes.

  • Logo - Standard Bank
  • Logo - Belmont
  • Logo - Generali
  • Logo - Hansard
  • Logo - Royal London 360
  • Logo - Gower
  • Logo - Sovereign
  • Logo - Brooklands