One of the main perceived disadvantages to pensions and annuities has been the lack of access available to accrued pension funds. However, recent changes in legislation
As long as certain criteria are met, there is the option of no upper limit to the accessible income have brought about exactly what the name suggests greater flexibility from your pension.
You need to have sustainable pension income, that is, guaranteed income, of £20,000 per annum both in the year of your withdrawal and for the rest of your life. You also need to have finished contributing to your pension scheme.
Once the above criteria are met, the remaining fund after all the tax free entitlement can be accessed as income which will be liable to your marginal rate of income tax.
As this option is relatively new, having been allowed since 2010, there are still very few pension companies who facilitate this. As with any retirement decisions, it is wise to take advice before making your final choices.
