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Options at Retirement

Withdrawing your money when you need it

This is commonly known as “drawdown”.

Flexi-Access Drawdown is where all or part of your pension fund is used to provide you with a pension income, and the remaining funds stay invested. You can take any amount of income you choose from your fund on a regular and/or ad-hoc basis, subject to the value of your fund.

Usually 25% of the fund value which you are using to take benefits from will be treated as a tax-free lump sum with the balance being subject to tax at your own marginal rate of income tax.  Please be aware, in the short-term emergency tax may apply and more generic information is available on the taxation of pension income from the Government.

As your funds remain invested their value may go down as well as up, which may affect how much you can withdraw.
Once your pension fund has been exhausted, no further benefits are payable.

Some providers may set a minimum fund value that you must have in order to take Flexi-Access Drawdown.

Drawdown is available from Sanlam, as well as other providers. It is important that you shop around. This is because other providers may offer different features and charging structures on their products which are more appropriate to your needs and circumstances and may offer higher levels of retirement income.

If you choose to take this option and go into drawdown you may wish to seek guidance or financial advice to ensure that your fund is invested in a manner appropriate to your attitude to risk. More information on guidance and advice.

Sanlam offer drawdown within our 5 star Defaqto rated OneSIPP. Please contact us for more information on this product.

Sanlam Offer drawdown within our 5 star rated OneSIPP. Please contact us to understand how you can transfer into this product.

Investing involves risk and the value of investments and the income from them may fall as well as rise and are not guaranteed. Investors may not get back the original amount invested.