Flexible Access Drawdown pretty much does what it says on the tin: it allows you to access your pension fund in a flexible way:
It is possible to take as much or as little income from your pension fund as you wish :for example (unlike with an annuity) it is possible to take tax free cash and no income at all.
The level of income you take can be changed at any time you like. Our cash flow modelling allows us to show the effect of changing income levels in the future, either upward or downward.
Tax free cash (up to 25% of the fund value) can be taken at any time from age 55, and can be taken in instalments if you wish i.e. it doesn’t have to be taken all at once
Income payments can be tailored to make them as tax efficient as possible e.g. so as total income is kept within the personal allowance for income tax, or within the higher rate tax threshold.
Your fund can be passed on to your family upon your death. This is entirely tax free if death occurs before the age of 75, or subject to a 45% tax charge if after age 75.
Your family can also take an income from your pension fund upon death, which is entirely tax free on death before age 75, or subject to their prevailing rate of income tax after age 75