Flexi-access drawdown (FAD)

Key pension facts
Withdrawing from a pension

Flexi-access drawdown is one of the forms of income drawdown through which you can draw benefits from your pension. 

You normally take out the first 25% as a tax-free lump sum (known as the Pension Commencement Lump Sum (PCLS)) and then take the rest flexibly as and when you choose – you can take lump sums when you need them or take a regular income, or a combination of these; any money you are not taking from the pension pot remains invested and can continue to grow in value.

If you have opted for FAD you can still end up buying an annuity with what you have left over.

See also our retirement planning blog post.

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