Income Drawdown

Income drawdown allows you to take an income directly from your pension fund. This can provide greater benefits to beneficiaries on death than conventional annuities, as well as providing greater control over what income is taken. However, income drawdown can be a more expensive option and can lead to uncertainty, due to fluctuating annuity rates. The options available when you come to take your pension have changed since 6th April, 2006. In some cases you may no longer have to buy a pension that increases at a set rate. The rules on pension drawdown (called "unsecured pension") have changed. And you may no longer have to buy a pension when you are 75 – a new form of drawdown (called "Alternatively Secured Pension") is available. Existing schemes may need to change their rules to benefit from these changes. If you have an existing scheme, you should ensure you understand how the changes have affected the scheme and take advice – especially if you belong to a scheme to which your employer contributes. To get further advice on this issue, pop into a local Bradford & Bingley branch to speak to a Legal & General Financial Adviser.

Products to help you release your Capital: