Independent · Whole-of-Market · Liverpool

Pension drawdown and income advice in Liverpool

Pension drawdown lets you leave your pension invested and take income from it as you choose, rather than exchanging it for a guaranteed income. It gives you flexibility and control, and it moves the investment risk and the risk of running out onto you. First Equitable is an independent, whole of market firm of financial advisers based on Castle Street in Liverpool, and we help people work out whether drawdown suits them, and how much they can safely take.

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FCA Regulated

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Chartered Expertise in Our Team

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Whole of Market

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5-Star Rated

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Transparent Fees

First Equitable pension transfer advice at a glance

First Equitable is an independent, whole of market firm of financial advisers, authorised and regulated by the Financial Conduct Authority under firm reference number 782577, with Chartered expertise within the team.

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Location: 3rd Floor, 14 Castle Street, Liverpool L2 0NE and Bridgegate House, 5 Bridgegate, Chester CH1 1SA, serving the North West and clients nationally

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Advice type: independent and whole of market, recommendations from across the market rather than one provider

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Specialisms: defined benefit and final salary transfers, transfer value analysis, and retirement income planning once a transfer completes

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Credentials: FCA regulated, firm reference number 782577, pension transfer specialist permissions, a named adviser on every case

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Getting started: a free initial consultation at our cost, with no obligation to proceed

What pension drawdown means

Drawdown, sometimes called flexi access drawdown or income drawdown, means moving your pension into an arrangement where it stays invested and you take money out when you need it. You can normally take up to 25% of the pot as tax free cash, subject to an overall lump sum allowance of £268,275, and the rest is taxed as income when you withdraw it.

There is no set amount you have to take and no set frequency. You can take nothing in a year, take a regular monthly income, or take one off amounts. Capped drawdown, an older arrangement with a limit on withdrawals, closed to new entrants in 2015, so anyone starting drawdown today is in flexi access drawdown.

The trade off is simple. The pot is still invested, so it can fall as well as rise, and it is your responsibility to make it last.

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Drawdown or an annuity

These are not the only two options, and for many people a combination works better than either on its own.

Drawdown	Annuity
Income you control and can vary	A guaranteed income for life
The pot stays invested and can grow	No investment decisions to make
Anything left can pass to whoever you choose	Rates improve with age and with certain health conditions
Investment risk sits with you	Usually irreversible once bought
You can run out if you take too much too early	Nothing left for your family unless you pay for that feature

If a guaranteed income is what you are weighing up, our annuity purchase page covers that side in more detail.

How drawdown is taxed

Up to 25% of your pot is normally tax free, within the overall lump sum allowance of £268,275. Everything else you withdraw is added to your income for that tax year and taxed at your marginal rate, so a large one off withdrawal can push you into a higher band for no good reason. There is a second trap. Once you take taxable income from a defined contribution pension, your annual allowance for future pension contributions normally drops from £60,000 to the money purchase annual allowance of £10,000, and it cannot be undone. If you are still working and still paying in, taking income early can quietly cost you far more than it gains you. Spreading withdrawals across tax years, and choosing carefully which pot to draw from first, is usually where the value in advice sits.

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How much can you safely take

Most cases run to between eight and twelve weeks from first meeting to final recommendation, which is why we would rather start before your transfer value guarantee is close to expiring.

Sequencing risk

Taking income while markets are down does lasting damage, because the money withdrawn is not there to recover. Two people with identical pots and identical average returns can end up in very different places depending on the order those returns arrive.

Your other income

The state pension, any defined benefit pension and other assets change how much pressure sits on the drawdown pot. The more guaranteed income you already have, the more flexibility you can afford.

Reviewing it

A withdrawal rate set once and left alone is the most common failure. It needs revisiting as markets, spending and health change.

What drawdown advice costs

The first consultation is free and at our cost. If you ask us to go further, fees are agreed and confirmed in writing before any chargeable work starts.

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A fixed initial fee for the financial planning report

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Then a percentage of the portfolio we implement, on a tiered scale where the rate falls as the value rises

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Couples advised together are treated as one combined value, so the rate is often lower for both

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Ongoing service is optional, starts from 0.3% a year, and can be cancelled at any time

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No minimum contract and no exit fees, ever

Full detail is on our charges page.

Regulated advice you can check

First Equitable (UK) Ltd is authorised and regulated by the Financial Conduct Authority, firm reference number 782577, and company number 09910371. You can verify our permissions, including our pension transfer permissions, on the Financial Services Register. If something ever goes wrong, you have access to the Financial Ombudsman Service. More detail is on our regulation page.

Risk statement, keep prominent: The value of investments can fall as well as rise and you may get back less than you invested. Transferring out of a defined benefit scheme is unlikely to be in the best interests of most people.

Pension drawdown FAQs

What is pension drawdown?

Drawdown means keeping your pension invested and taking money out of it as and when you need it, instead of exchanging it for a guaranteed income. You can normally take up to 25% tax free, and the rest is taxed as income when you withdraw it.

What is flexi access drawdown?

It is the standard form of drawdown available since April 2015, with no limit on how much you can withdraw. Capped drawdown, the older version with a withdrawal limit, closed to new entrants at the same time.

How is pension drawdown taxed?

Up to 25% of the pot is normally tax free, within an overall lump sum allowance of £268,275. Anything else you take is added to your income for that tax year and taxed at your marginal rate.

Can I still pay into a pension once I start drawdown?

Yes, but usually far less. Once you take taxable income from a defined contribution pension, your annual allowance normally drops from £60,000 to the money purchase annual allowance of £10,000, and that change cannot be reversed.

What happens to my drawdown pension when I die?

Under current rules the remaining fund can usually pass to your beneficiaries. From April 2027 unused pension funds are expected to come within the scope of inheritance tax, which changes the planning for many people.

How much can I take each year without running out?

There is no single safe number. It depends on your other income, your pot size, how your money is invested and how long it needs to last. The rate also needs reviewing rather than setting once and leaving alone.

Talk to an adviser about your retirement income

The first conversation is free, at our cost, with no obligation to go further.