020 7189 9999
Opening hours
Mon - Fri: 7.45am to 6pm (Thurs 8pm)
Sat: 9.30am - 1.30pm
Request a call back

Pension changes infographic

Our pension changes infographic gives you a clear and simple roundup of the new rules that came into effect April 2015.


New income drawdown rules

Taking income drawdown from your pension in 2015

2015 saw the introduction of George Osborne’s radical pension changes, which are designed to give savers greater freedom to access their pension from the age of 55. One of the new rules was the introduction of flexi-access drawdown – a new type of flexible drawdown where you can draw as much money from your pension as you like with no minimum income requirements, and can continue to make annual contributions of up to £10,000 into your SIPP or other pension during retirement.

What happened to flexible and capped drawdown?

Before April 2015 savers approaching retirement could choose from two types of pension drawdown which limited your withdrawals in line with Government rates, and flexible drawdown which allowed unlimited withdrawals but required a guaranteed income of at least £12,000 per year (from an annuity, final salary pension or other sources).

Everyone is eligible to take a flexible income from their pension with the new flexi-access drawdown.

Savers who were previously enrolled in capped drawdown will remain so unless they make withdrawals in excess of their limit, but all flexible drawdown pensions have automatically been converted to flexi-access drawdown. As capped drawdown is no longer open to new savers, anyone who is yet to retire will be eligible for flexi-access drawdown.

What are the other new pension rules?

Speak to a financial planner first

This new pension freedom has been celebrated by many savers, but remember that you could run out of money in later life if you make too many early withdrawals. Similarly, if your investments perform particularly badly you will have less money to enjoy for the rest of your retirement. If you’re unsure about drawdown, a financial planner can tell you how long your pension fund will last and how much income you could potentially take.

Book a free consultation with a financial planner

Important information

The decision to access your pension is an important one and will affect your income and possibly your standard of living for years to come. Therefore we recommend that before any decision is made you receive regulated financial advice or get free guidance from Pension Wise. Find out more about Pension Wise.


Past performance is not a reliable indicator of future returns

The value of your investment can go down as well as up, and you can get back less than you originally invested.

The Bestinvest Online Investment Service, including any account analysis and investment reports provided by our guidance services, is an online execution-only dealing service for investors who want to make their own investment decisions. It does not provide advice on the suitability of products and investments; if you are unsure about the suitability of any investment you should seek professional advice. Clients of our Investment Advisory Service and Managed Portfolio Service can use the website to obtain current valuations of their investments but cannot trade on these accounts online and should call their adviser if they wish to discuss changes to their investments.

Past performance or any yields quoted should not be considered reliable indicators of future returns. Restricted advice can be provided as part of other services offered by Bestinvest, upon request and on a fee basis. Before investing in funds please check the specific risk factors on the key features document or refer to our risk warning notice as some funds can be high risk or complex; they may also have risks relating to the geographical area, industry sector and/or underlying assets in which they invest. Prevailing tax rates and relief are dependent on your individual circumstances and are subject to change.

Issued by Bestinvest (Brokers) Limited (Reg. No. 2830297), which is authorised and regulated by the Financial Conduct Authority. Financial services are provided by Bestinvest (Brokers) Limited and other companies in the Tilney Bestinvest Group, further details of which are available here. This site is for UK investors only.
© Tilney Bestinvest Group Ltd 2016.

Version: RC1027.44113