Retirement Options

Drawdown/Withdrawal of pension funds:

• You can take money from your pension

• 25% of the money you took out is tax free, the 75% left in the pension becomes subject to the income tax

• When you are 55, (57 from April 2028) you can choose to take all or some of your pension into drawdown. Once you do this - your pension becomes ‘crystallised’ meaning you are able to access this benefits

(UFPLS) Uncrystallised funds Pension Lump Sums

• You take out a money from your pension without moving into pension drawdown (can be a one-off payment)

• 25% of the money on each withdrawal is not subject to tax, while the 75% left is subject to income tax

Annuity

• This is a guaranteed income to be paid to you for the rest of your life but you will need to consider that some annuities have high fees, some earn little to no interest, some might not leave anything for your heirs if your life expectancy declines, some annuities limits your returns and you might have to pay more taxes.

No one size fits all. And which option you choose depends on your circumstance. You can reach out to Oasis Wealth and we will explain which option could be suited for you.

Please note the value of investments and the income they produce can fall as well as rise, you may get back less than you invested. Tax treatment varies according to individual circumstance and is subject to change.

Here are two illustrations of drawdown vs UFPLS: