Flexi Access Drawdown

Flexi Access Drawdown (FAD) allows the investor to draw down without the restrictions applying to capped drawdown. This includes drawing down the whole fund if necessary.

The main uses for Flexi Access Drawdown are as follows:

To take the pension commencement lump sum and leave the remainder of the fund invested
To provide an income*
To take further lump sums
To leave the fund invested to reduce Inheritance Tax liabilities
To use as an emergency fund

*If you take an income, you will not be able to make contributions of more than £10,000 per annum back into your Flexi Access Drawdown plan. This is known as the Money Purchase Annual Allowance (MPAA).

Flexi Access Drawdown was introduced in April 2015.

Flexi-Access Drawdown (FAD) will replace capped and flexible drawdown options for clients entering drawdown after 6 April 2015, and also for those with existing flexible drawdown plans at 6 April 2015.