Flexible Access Drawdown (FAD)

Unlock a tax-free lump sum of up to 25% of your pension pot while keeping most of your savings invested. With the Flexible Access Drawdown, you can access your income whenever needed, allowing you to adjust your withdrawals per your changing financial situation.
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Since April 2015, all new pension drawdown products have provided the option for flexible-access drawdown, allowing your pension pot to be invested while enabling you to withdraw an income as needed. You have the freedom to take out any amount from your pension and dictate how your funds are managed. This straightforward method allows you to access cash from your pension, with withdrawals starting from your 55th birthday, increasing to 57 from April 2028.
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Our services are designed to provide peace of mind and financial security for you and your loved ones.

Personalised Approach

We tailor our strategies to meet your unique financial situation and goals.

Experienced Advisors

Our team consists of seasoned professionals with extensive knowledge of Inheritance Tax laws.

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We focus on forward-thinking strategies to mitigate the impact of tax.

Transparent Communication

We ensure clear and straightforward communication, keeping you informed every step of the way.

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Ready to secure your financial future and protect your loved ones from unnecessary taxes? Contact Fintegrity IFA for a personalized consultation. Our experts are here to guide you through every step of the process.

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The information provided in these FAQs does not constitute professional financial advice. We strongly recommend that you consult a professional adviser before proceeding with a financial transaction.

How much can you draw down from your pension each year?
There are no restrictions on the amount you can withdraw from your savings in a Flexible Access Drawdown FAD but determining a sustainable withdrawal rate is crucial to avoid depleting your savings. We begin by evaluating your investment risk tolerance and leverage our expertise to establish a target investment return for your portfolio. This information helps us estimate the maximum sustainable withdrawals you can make. To ensure that your financial plan remains on track, we conduct regular progress reviews.
How much can I draw from my pension without paying tax?

Generally, you can draw up to 25% of the value of your savings as a tax-free lump sum. Any additional withdrawals are taxed as income and subject to standard tax allowances and rates. Withdrawals from a pension are not assessable for National Insurance, just Income Tax.

Note that this tax treatment depends on your circumstances and may be subject to change in future.

What are the main risks with a drawdown pension?
Longevity risk refers to the potential depletion or total exhaustion of your investment value if your earnings are less than your withdrawals, with this risk amplifying over time. Mortality risk highlights the challenge of your savings needing to sustain you longer than expected if you live beyond your anticipated lifespan. Inflation risk signifies the gradual erosion of your savings’ spending power when inflation outpaces your investment returns. Lastly, investment risk underscores the absence of guaranteed returns, meaning the value of your savings and their income can fluctuate, potentially diminishing the amount available for future withdrawals.
What are the pros and cons of a flexible access drawdown pension?
Pros include the ability to draw your tax-free lump sum immediately while deferring income to a later date, offering flexibility in managing your income by increasing, reducing, suspending, or restarting withdrawals as needed. You have control over your investment strategy, whether cautious, balanced, or adventurous, and any profits generated within your drawdown pension are exempt from personal income tax and capital gains tax. Additionally, you can purchase an annuity in the future, which may become more favourable as you age, and you can leave any remaining funds in your pension to your loved ones upon your passing.

On the downside, a drawdown pension is complex and requires annual reviews; although not legally mandated, consulting a professional adviser may simplify management. Furthermore, there is no assurance that your income will match current annuity offerings, and the value of your investments and your potential income can fluctuate, impacting your retirement withdrawals. Additionally, there is a risk of outliving your savings as increased longevity may deplete your fund faster. Given the complexity of this area and the significant consequences of making poor decisions, We highly recommend you seek advice from a qualified professional before proceeding with a flexible access drawdown.

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I wanted to retire but needed to check it was viable and needed advice regarding drawdown, pension amalgamation, savings. Neil listed well, took time to write up a detailed assessment of my needs, risk preferences, options. I now feel confident about retiring. Neil confirmed the validity of some of the ideas I had, but also gave me alternative strategies I hadn't thought of, which made more sense.

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Life was changing and, at age 60, my job prospects were uncertain. Neil helped us to identify what immediate financial worries we had, and life goals we wanted to achieve in the future. Neil asked us about what level of risk we were happy to engage in, and after that meeting devised a suggested plan based on the answers we gave. the immediate results have been positive; paying off the mortgage from my various pension pots, gathering them into a new managed portfolio have resulted in an immediate reduction in monthly outgoings and a sense of having more active control over my finances has given us peace of mind

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I was looking for guidance and support on where to invest my savings. Neil was super friendly, helpful and approachable and did a great job of explaining things in layman's terms!

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As I had made a decision to take early retirement, he helped me to plan and set up a retirement fund. This all proceeded very efficiently. So far so good!

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Neil asked us thorough questions so that he had a very good understanding of our financial situation. He presented his findings to us in an easy to understand format and explained everything clearly. He offered very good advice and we felt confident that he was very knowledgeable in all areas that he helped us in. I felt that he was a safe pair of hands. He was easy to deal with, always responded quickly, and I found him very trustworthy and impartial.

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He talked me through the options after ascertaining my attitude to risk/reward and analysing my outgoings and plans for the future. Started in March 2021 and it seems to be going to plan.

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Ready to secure your financial future and protect your loved ones from unnecessary taxes? Contact Fintegrity IFA for a personalized consultation. Our experts are here to guide you through every step of the process.

0203 086 7043
hello@fintegrityifa.co.uk

The Workers’ League House, 44-50 Royal Parade Mews, Blackheath, London, SE3 0TN

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