Income withdrawal

One of the two ways in which a member of a defined contribution (www.practicallaw.com/6-107-6072) arrangement under a registered pension scheme (www.practicallaw.com/5-201-6474) can take drawdown pension (www.practicallaw.com/7-507-1079) (the other being a short-term annuity (www.practicallaw.com/3-380-6447)). Income withdrawal allows the member to draw an annual income while leaving the remainder of their fund invested. The member must have reached normal minimum pension age (www.practicallaw.com/5-204-0445) or meet the ill-health condition (www.practicallaw.com/0-204-0966). From 6 April 2015, the member may either designate funds to a flexi-access drawdown fund (www.practicallaw.com/1-602-0845) or to an existing capped drawdown (www.practicallaw.com/2-507-1114) fund established before 6 April 2015. (Paragraph 7, Schedule 28, Finance Act 2004.)

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