[vc_row][vc_column][vc_column_text]Since the introduction of the new pension freedoms in April 2015, more and more retirees have opted to take flexible withdrawals from their pension funds by going into what’s referred to as drawdown.

The Financial Conduct Authority recently reported that drawdown has become much more popular, with twice as many pots moving into drawdown than go into annuities.

Income drawdown is where you leave your pension pot invested and take an income directly from it, instead of using the money in your pot to buy an annuity (a regular guaranteed payment from an insurance company). With drawdown, the money left in your pot will continue to benefit from any investment growth.

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_column_text]Making the right decisions

Whilst being in control of their pension pots has given retirees more options as to how and when they access their funds, making the right choices about their money can be a daunting task for those unaccustomed to dealing with pension and investment issues. Understandably, many people fear running out of money in later life.[/vc_column_text][/vc_column][vc_column width=”1/2″][vc_single_image image=”1638″ img_size=”full” add_caption=”yes”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Getting the right advice

If you’re thinking about accessing your pension savings, you need to be aware that although the first 25% of funds withdrawn from a pension pot are normally tax-free, if you take more than that, it will be regarded as income for tax purposes and could push you into a higher tax bracket.

We will be able to put together a plan that will help ensure you make the best use of your savings. Being aware of your likely cash flow in retirement will help you avoid the risk of using too much of your pension pot too soon.

The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]By Ivan Lyons, Director, Investment Solutions, Worthing

Contact Investment Solutions: Grafton House, 26 Grafton Road, Worthing, BN11 1QT. 01903 214640 or send an email to Ivan at: ilyons@graftonhouse.net or visit www.investment-solutions.co.uk
Twitter:  @investment_sols[/vc_column_text][/vc_column][/vc_row]