Portfolio Plus Pension Flexi-Access Drawdown

Flexi-Access Drawdown allows your clients to withdraw funds from their pension pot from age 55, leaving the remaining pot invested. The Portfolio Plus Pension offers both full and partial income drawdown. The minimum pension pot value to start taking Flexi-Access Drawdown is £50,000.

Your clients can take money from their pension pot in the following ways:

  • A tax-free cash lump sum of up to 25% of the part of the pot being used for drawdown, and/or
  • A regular income, and
  • Ad hoc income payments (up to a maximum of two in each income year).

Any available tax-free cash must be taken at the time your client first uses that part of their pension pot for Flexi-Access Drawdown, and not at a later date.

There is no restriction on the maximum amount of income that can be taken. However, if your client wishes to stop or start regular withdrawals, or take an ad hoc withdrawal, and the value of their pension pot is below £5,000 they will need to cash in the whole pot. If they are already taking regular withdrawals, these can continue once the value of the pension pot drops below this amount.

Full income drawdown
  • The client designates the whole of their pension pot for income drawdown.
  • No further contributions or transfer payments can be paid into the plan.
Partial income drawdown
  • The client designates part of their pension pot for income drawdown.
  • The minimum remaining uncrystallised pension pot immediately following a partial income drawdown designation is £5,000.
  • Further contributions and transfer payments can be paid into the part of the pension pot not being used for income drawdown.
  • Any remaining pension pot that hasn't been designated for income drawdown can still be used at a later date.

The client can choose which funds or assets their payments are taken from. They can also switch funds at any time.

The minimum levels of regular income that can be taken are:

Monthly £100
Quarterly £300
Half yearly £600
Yearly £1,200

There are no maximum amounts.

The minimum ad hoc income payment is £1,200.

Money Purchase Annual Allowance

If your client takes any income under Flexi-Access Drawdown, the Money Purchase Annual Allowance (£4,000 gross for the 2017/2018 tax year) will apply for all future contributions made to money purchase (defined contribution) schemes. Once the MPAA applies, your client will not be able to use any allowances from previous tax years. 

If your client is a member of a final salary pension scheme, their overall Annual Allowance stays at £40,000 and they can still use carry forward in that scheme.

Capped Income Drawdown

It is no longer possible to start Capped Income Drawdown. If your client has already used part or all of their pension pot for Capped Income Drawdown, they can continue and their income level will remain subject to the maximum allowed. If they wish to take more than this limit, they will need to move their pension pot into Flexi-Access Drawdown.

Transfers in

We can accept transfers into our Portfolio Plus Pension of pension pots that are being fully used for Flexi-Access Drawdown. We can also accept pots that are being fully used for Capped Income Drawdown, but we will convert the pot to Flexi-Access Drawdown when we receive it.

Please see our product literature on the right for more information and details of the charges involved.

The value of investments can fall as well as rise and is not guaranteed.