What Is Flexible-Access Drawdown?
Drawdown, or Flexible-Access Drawdown (FAD), is an invested retirement product that lets you access your pension money as and when you need it, giving you the control to decide how much income you receive. This means you can leave some of your pension invested for longer, giving it the opportunity for further growth – while also receiving a pension income.
Drawdown offers you the flexibility to make changes to your plan as and when you require. You can change the level of income you receive, the frequency of payments and where your funds are invested.
As with all investments, there is a certain level of risk associated with drawdown. The value of your fund can rise or fall, but the objective is that you will enjoy healthy growth through the lifetime of the plan. Your Independent Financial Adviser (IFA) will work with you to understand your attitude to risk, and your fund will be invested in a portfolio which is appropriate for your objectives and circumstances.