Under flexible drawdown, there is no limit to the amount of income that can be withdrawn each year.

Investors may enter flexible drawdown provided they meet certain conditions. This includes having a secured income of at least £20,000 per annum, from the following sources:

• State pensions;
• Annuities from pension schemes;
• Pensions from defined benefit schemes and similar types of pension; and
• Pensions from certain overseas schemes.

Other types of income, including drawdown income, do not count towards the required minimum secured income.

It is not possible to start flexible drawdown if contributions have been made to any pension in the same tax year and, once in flexible drawdown, it is not possible to make further contributions. The investor is responsible for any tax or other costs that arise should a contribution be made to any registered pension scheme once flexible drawdown has been started.

Suffolk Life accepts all forms of transfer in, including drawdown to drawdown, facilitating flexible drawdown for clients with SIPPs that do not currently offer it.

Unlike capped drawdown there is no requirement to review income limits on an ongoing basis.

For more information and prices, please see our literature library.

Illustrations for flexible drawdown are available direct from our Illustration Wizard.   

Go back to our Drawdown page.