What You Should Do Before You Enter Drawdown
Since the pension reforms in 2015, more than half a million people have put their pension into income drawdown.
If you’re new to stock market investment, then it makes sense to get advice on how best to do this, how much money to invest and what funds would best suit your needs. Taking the right decisions about your pension pot at this stage is vitally important, as you will want your money to last as long as you do.
Get the financial facts
It pays to start by drawing up a budget covering what you think you’ll need to spend to cover your living expenses in retirement. This will enable you to see how much income you can afford to take from your pension.
It’s also important to remember that when you take money out of your pension, only 25% is tax-free. If you take out more than that, it’s taxable and you might find yourself paying tax at a higher rate. Good advice will help you take the right decisions at the right time.