Income drawdown scheme

Income drawdown is also known as an unsecured pension. An income drawdown scheme allows a pension scheme member to continue to invest in a fund whilst receiving a limited income from the scheme.

This type of pension investment is only available to those aged over 75. Under an unsecured pension you can choose to immediately take a tax-free cash lump sum and then, as opposed to purchasing an annuity, leave the remainder of your funds in a tax-free fund.

An annual income can continue to be withdrawn from the fund. The income will vary depending on the limits set out by the Government’s Actuary Department (GAD). The minimum limit is nil and the maximum is 120 per cent of the figure set out by GAD.

Related Articles

One third of the UK is too expensive for low-income families to rent a home

High rents mean 33% of UK unaffordable for low income families

The rise in rental costs and lack of supply of affordable housing means one third off the UK is off limits for families on low incomes.

Indirect taxes have increased over the last four years, says the ONS

Income gap between rich and poor falling, says ONS

The Office for National Statistics says both rich and poor are paying more tax, the gap between the two is narrowing and indirect taxes hit the poor harder than the rich.

Official figures suggest pensioners now enjoy higher levels of disposable income

Pensioners reach middle-income status at expense of families

Official figures from the Office for National Statistics (ONS) show that there has been a big rise in pensioners who are now in the middle-income bracket at the expense of working families.

The FLS has helped mortgage lending but business lending has not risen

Funding for Lending Scheme fails to persuade banks to lend

Net lending under FLS in the final quarter of 2012 fell by £2.4bn and showed that the scheme has helped mortgage lending but businesses are still struggling to access finance.

Pensions Minister Steve Webb: "Too few people are saving for retirement"

Pension scheme membership falls for 11th year in a row

Membership of private pension schemes is now at the lowest level since records began in 1997 and has fallen for the 11th year in a row, according to official figures.

See more related articles

Newsletter sign up


In addition to the weekly newsletter, which areas of finance would you like to hear from us about:

Tick this box if you would like us to send you promotions from carefully selected third parties.

By signing-up you agree to the terms of use and privacy policy.

sign-up button

Get the latest information on: