Planning
Know your choices at retirement
Understand annuities, drawdown, and lump sums - and how to combine them for the best outcome.
1 Nov 2024 | 7 min read
Guides
Flexi-Access Drawdown
Learn how drawdown works, what risks to watch for, and how to take flexible retirement income while keeping your pension invested.
What is it?
Flexi-Access Drawdown explained
Since 2015, everyone has been eligible for Flexible Drawdown removing the previous requirement to prove a minimum secured income before accessing pension freedoms.
Instead of exchanging your pension for a fixed income (as with an annuity), drawdown keeps your money invested. You withdraw income as and when you choose with no upper limit while the remaining fund continues to grow or fall with investment markets.
Choose your own income
Take as much or as little as you need each year. There is no upper limit though withdrawing too quickly risks depleting your fund early.
Take your tax-free cash
You can take up to 25% of your pension tax-free (capped at £268,275), leaving the remainder invested in drawdown.
Your fund stays invested
The remainder of your pension pot continues to grow (or fall) with investment markets giving it potential to increase over a long retirement.
Case Study
Julie, 61 flexible income with tax planning
Julie has a pension pot of £210,000 and has chosen drawdown to maintain control over her income while managing her tax position carefully.
In her first partial year of retirement, she withdrew just £3,000 for a holiday keeping well within the basic rate tax band with no adverse tax consequences.
The following tax year, Julie planned a £25,000 withdrawal as her main income source. Because it was a new tax year and she had no other employment income, she remained within the basic rate band and avoided any higher rate liability.
Key takeaway timing matters.
Spreading withdrawals across tax years is one of the most effective ways to reduce the tax you pay in drawdown. An adviser plans this across your full financial picture.
Our investment manager
Why we chose Timeline
Timeline is one of the UK's most trusted Managed Portfolio Service (MPS) providers, chosen for their evidence-based approach, low costs, and consistent performance track record.
01
£10 billion Assets Under Management
Timeline manages over £10 billion in assets and is growing rapidly, giving clients access to institutional-grade investment management.
02
Ongoing market monitoring
Timeline constantly monitors markets and reviews your recommended portfolio on a quarterly basis, ensuring your investment has the best potential for growth moving forwards.
03
Technology-driven efficiency
Timeline's advanced technology allows them to charge as little as a quarter of the fees that comparable firms typically charge savings passed directly to you.
04
Nobel Prize-winning academic foundation
Timeline portfolios are built on Nobel Prize-winning academic research low-cost, evidence-based, globally diversified, designed to capture long-term capital market returns.
05
Quarterly market reviews
Clients receive access to market commentary on a quarterly basis, keeping you informed about market conditions and how they affect your portfolio.
Your pension platform
The Aviva Platform
While your money is invested through Timeline portfolios, Aviva acts as your pension platform holding your assets, processing payments, and giving you a clear view of your fund value at all times.
By logging into Aviva, you can easily monitor your portfolio performance and see exactly how your pension is progressing all in one place.
Our ongoing service
As part of our flexible drawdown offering, we conduct an annual review with you to ensure your retirement plan remains aligned with your goals.
- Annual assessment of your pension's investment performance
- Review of your income withdrawals and fund sustainability
- Assessment of any changes in your health, lifestyle, or income needs
- Discussion of any necessary portfolio adjustments
This ongoing, personalised review process is designed to help you make the most of your retirement savings and adapt your plan as life changes.
Transparent pricing
Charging comparison
Industry average fees calculated from a range of firms, alongside Pense's pricing. The difference of 0.87% per year compounds significantly over a 20 - 30 year retirement.
Item
Industry Average Annual Charge
Pense Annual Charge
Annual Saving
Portfolio Charge
0.49%
0.09%
0.40%
Discretionary Fund Management (DFM)
0.37%
0.09%
0.28%
Platform Fee
0.25%
0.20%
0.05%
Ongoing Financial Advice Fee
0.64%
0.50% (max £750)
0.14%
Total Annual Charge
1.75%
0.88%
0.87%
*Indicative annual charges. Actual fees vary based on pot size and selected services.
Get your personal drawdown illustration
Book an appointment online and an adviser will prepare a personalised drawdown illustration based on your pension, withdrawal goals, and tax position.
Other Guides
More resources to help you plan your retirement
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Am I getting the most from my pension?
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Enhanced annuities - could your health pay off?
If you have a health condition or lifestyle factor, you may qualify for a significantly higher guaranteed income.
15 Nov 2024 | 4 min read
FAQ's
Everything you need to know about flexible drawdown