John is 56 and has several pension funds and a good amount of savings. With this fund of £100,000, John opts to first take his full allowance of tax free cash, £25,000, as he wants to pay off his mortgage. He doesn’t require an income today as he is still working and given that he is comfortable with risk and can tolerate a potential loss, he puts the remainder into a Flexi-Access Drawdown and invests into funds with a medium risk profile.

He plans to reduce his working hours in the future and wants the flexibility to alter his pension income to ‘bridge’ this gap with a view to taking a safe, secure income when he retires completely. Let’s take a look at John’s Journey through Flexi-Access Drawdown, starting with £100,000:

* Assuming an average 4.9% yearly growth before charges