Income withdrawal | Practical Law
Income withdrawal
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Income withdrawal
Practical Law UK Glossary 3-207-2098
(Approx. 3 pages)
Glossary
Income withdrawal
One of the two ways in which a member of a
defined contribution
arrangement under a
registered pension scheme
can take
drawdown pension
(the other being a
short-term annuity
). 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
or meet the
ill-health condition
. From 6 April 2015, the member may either designate funds to a
flexi-access drawdown fund
or to an existing
capped drawdown
fund established before 6 April 2015. (
Paragraph 7
, Schedule 28, Finance Act 2004.)