Larger pension withdrawals given green light

Over 55s can dip deeper into their pension pots following a recalculation by the Government.

Retired savers taking an income from pension pots still invested in the stock market will get a significant boost in October, it was announced today. The maximum withdrawals on so-called income drawdown policies will be lifted by hundreds of pounds.

Hundreds of thousands of retirees have chosen to go into drawdown at retirement rather than buy an annuity, which turns a pension pot into a fixed income for life.  Drawdown, which is available from age 55, keeps you invested in assets such as shares, bonds, and property while you take a steady income. This means your money has a chance to grow – but equally you could lose out if markets crash.

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