Retirement Planning - Schedule regular tax-free withdrawals, with or without deferral of taxable income **AdviserGo, UK**

Under the 'Flexi-Access Drawdown (FAD)' rules, there are many options available for individuals wishing to draw an 'income' from their pension benefits. This guide is intended specifically for modelling a tax-free income, with the option of deferring (perhaps indefinitely) any taxable income until some later time. With this in mind, one could:

 - Take the entire 25% tax-free lump sum, via a single, one-off crystallisation of benefits. The remaining (taxable) benefits, in Flexi-Access Drawdown, can then be used as needed, or preserved, for one's beneficiaries, as detailed here >>>

Or...

 - Choose a strategy of 'partial pension encashment', crystallising what is necessary to provide a tax-free income, year on year, for as long as possible, with the option of deferring any taxable income, as appropriate.

It is the latter of these two options that is now detailed, below:

  • Set-up a regular tax-free income

If wishing to take a regular tax-free 'income' from un-crystallised benefits, held in a Money Purchase account, it will be important to consider your specific requirements and priorities, given that multiple options options, as suggested below:

- Receive a pre-determined monetary figure (of tax-free cash), year-on-year, either level or increasing with inflation. This is easy, as outlined below:

- Receive a pre-determined amount (of tax-free cash), but one that varies, dependent upon the individual's particular income requirement, year-on-year. This is difficult, because there is no automatic function that will achieve this - contact Voyant Support for further guidance.

- Receive a finite monetary amount (of tax-free cash), by 'phasing' the crystallisation of benefits over a pre-determined timeframe. This is easy, as outlined here >>>

To schedule a pre-determined tax-free income, year-on-year - either level or increasing with inflation - one should navigate to the Planned Withdrawals screen, via the left-hand menu. The relevant settings are illustrated below, in 3 easy steps:

1. Click 'Add withdrawal'

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2. Specify the desired amount, and type of withdrawal

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3. Select a 'Start', and 'End' event, for when the income will commence (and terminate)

In the Timing section of the planned withdrawal, set a start and end event 

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To return to 'Retirement Planning Options - Default Settings' click here <<<