The Phased Drawdown option was created for those who retire in stages, e/g those people who do not go from full time employment to not working at all for example. The scheme allows you to withdraw cash tax free as well as leaving money tied up in investments, much as you would with income drawdown. When you need more money from the scheme, you can withdraw it, allowing you to access money that would otherwise be invested. There are also greater death benefits using this options, as it can reduce the amount of income tax that will then be payable.
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