Pension drawdown
Drawing down on a pension isn’t a decision to be made lightly. Our team of independent pension specialists are on hand to deliver guidance and expert opinion in a market that’s often difficult to navigate. At Cardan, we’re here to help you manage your pensions for drawdown so you can access them in a way that supports your income and capital needs.
Making pensions more usable
The introduction of Pension Freedoms in 2015 opened up the ability to access pension money through drawdown. This has made pensions more usable in retirement, with more ability to access capital, potentially retire earlier, and so on. Without diligent guidance and management of your pensions, though, you could get yourself into trouble and potentially even run out of money too soon.
We provide informed advice on drawdown rules to help you understand what you can take from your pension while still ensuring it sustains your financial needs for life. We also help manage the investment of pensions to get the most from your funds and provide for your unique needs.
How much income can I take?
The amount of money you can take from the drawdown will depend on a number of factors and the type of investments you select to provide growth. That’s why it’s important to first understand and assess your needs and objectives.
Does this drawdown only need to provide income for a particular period of time, say until your State Pension kicks in? Does it need to provide a growing and sustainable income for life? By understanding the answers to these questions and others like them, we’re better able to guide and advise you on what’s most prudent.
Can I take out a lump sum?
Under Pension Freedoms, you can access your entire pension pot from the age of 55. How much you take will depend on how much tax you wish to pay, and if the remaining pension pot would then provide a sustainable income to meet your needs.
How is the money invested?
When taking money out of your pension, there needs to be a return going into the pension to replace what you’ve removed; otherwise you’ll just eat into your own capital and eventually run out of money. How the money will be invested will depend on your objectives and attitude to risk.
With you as our client, we’d work to understand your needs and objectives, then discuss investment options and risk with you. Once we understand this, we’d design a portfolio that best suits your objectives.
Get in touch
If you’re interested in joining the Cardan family, please get in touch with us using the form below. We look forward to hearing from you.
About Cardan Wealth Management
Cardan will always be about trust, clarity, commitment, honesty, and integrity. We pride ourselves on being both commercially and morally sound, and socially aware too. We’re on a journey to create a group of companies that can share best processes and practices while recognising different ownership structures and regional nuances. Strength and flexibility are key ingredients to our growth strategy.
