Advantages of Flexi Access Drawdown

Advantages of Flexi Access Drawdown

Flexibility: Upon your death, unlike an annuity any remaining funds can be transferred to your children, spouse or other beneficiaries.

Tax Efficiency: Because of the generous tax relief that applies during the accumulation period of your retirement fund, as well as the aspect that they are outside the estate for the purpose of inheritance tax (meaning that except in exceptional circumstances they are not liable to inheritance levies), pensions are widely considered to be one of the most tax efficient ways of investing and saving.

The disadvantages of Flexi Access Drawdown

At Accudo Investments we pride ourselves on our commitment to independent consultancy and our advice is always based on your individual needs and circumstances. Choosing to take income via Flexi Access Drawdown is not suitable for everyone, so if it is not in your interests we will inform you and guide you towards more appropriate options.

Limited Funds: While an annuity is guaranteed for the duration of your life, this is not the case for pension income drawdown. Funds can be depleted if too much cash is taken out, so smaller pension pots are not suitable for this.

Investment Risk: Our highly skilled team will manage your investment portfolio with the greatest of care, however the funds are effectively still tied to the performance of the market. It is essential to understand the market can go down as well as up, requiring an element of managed risk. If you do not feel comfortable with this kind of scenario an annuity would be a far safer choice.