Retirement - Drawdown vs UFPLS vs Annuity

Drawdown, UFPLS or Annuity? Since the pension freedoms of 2015, taking money out of a pension has been more flexible than ever. But having more options can lead to confusion and then inertia - we’re unable to make a decision because we don’t understand all the options. So let me help you out...
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Chapters:
00:00 Your options
00:33 Introduction
01:29 Confrontation of Problem
01:43 The Options Explained
06:53 When you would use an annuity
08:02 When you would use Flexi-Access Drawdown
09:18 When you would use UFPLS
09:59 Conclusion

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📫 Leave me a comment below - I read all of them and love hearing from you!

[MeaningfulMoney]

How did you find this video? Share your thoughts below - I love responding to your comments and will do my best to do so.

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[AbhishekShivkumar-tiru]

The best explanation on YouTube and a must watch for everyone approaching retirement!

[neilefc]

Just want to give this channel a little praise. I am in the process of a career change and much of the information provided is of inestimable value to me. From the presentation to the time-frame of the videos. Absolutely fantastic stuff. I really, really appreciate what you are doing. x

[iainhunneybell]

UFPLS is new to me although completely logical. Also, I’d not realised the drawdown is managed, and presumably charged, as a separate account. As always VERY helpful. Thank you Pete for such excellent advice all the time

[stuartb]

Great Video, thanks. Please do a part 2 video that shows what we might do if our fund is lucky enough to reach a million or the lifetime allowance threshold. How that might affect our pot crystallization process. What would be a sensible strategy in that situation ? Especially if the investment might still be growing at a steady 7% py.

[craiglawrance]

Really useful illustration Pete. You highlighted the value of not crystallising too much in one go. My kids will be delighted, one day.

[bighare]

Love your simple jargon-light run throughs Pete. You nailed this one. A part 2 on options to carefully manage sustainable drawdown would be, well, on the money!

[porschecarrerascabriole]

Just shows that the flexibility we have on retirement is adding confusion to which option to go for. In addition having DB pension which is inflexible by nature muds the water further. To finish it off add ill health into the mix and now I am seriously confused on making right choices😢

[cheekytyke]

As a visual learner, this was amazing. Thank you

[haroldbetterson]

Pls do one on how to pay tax when drawing down 👍

[BarryJPage]

Thank you thank you thank you. This is by far the most simple explanation of what can be a minefield for the less well educated in this subject. You just gained another follower.

[celialyon]

Great video, as usual Pete. I am just considering my options and still need to get my head around the FAD vs UFPLS differences, and how it would work best for my needs. Also agree with various other comments that help on how the tax works would be really beneficial, constantly having to reclaim tax is a real pain. Def need for a part 2.

[julias-shed]

I’m 55 in a few months so this was much appreciated thanks. 😀

[MrHotrod]

Thanks Pete, clearest explanation of the complexities of drawdown I’ve seen. 👍 How does drip feed drawdown fit within the model.. drips of UFPLUS? Also interested in covering the question that most providers insist on an adviser to allow drawdown… ie you can’t do it yourself… thanks again, great content..

[mattsennett]

I think a part two would be good Pete as this is a complex area 👍🏻

[Joofie]

Excellent video as always Pete, with simple graphics. I think Part 2 with some examples would help people see how the different options might work for them

[GB-rety]

Having read the comments a trip to see an IFA seems sensible. If you do a part 2 please an you touch upon IFA charges for setting up these options?

[jblue]

Excellent video and very timely! I'm weighing up options right now with the possibility of retiring within the next two years. The difference between UFPLS and flexi drawdown have been confusing me - this has helped a great deal but I still feel as though I need more. It would also be good to understand more about crystallization events and the LTA implications with respect to both options.

[lornaprice]

UFPLUS seems like a very similar arrangement to Drawdown. There must be some reason for having both these methods of withdrawing money available. I would like to know what the difference is between them.

[MJ-YT-USR]

Thank you so much! I'm early 40's and recently (along with my wife) become mortgage free, which has for the most part (but not entirely) been at the expense of retirement saving. So now we're fully in retirement saving/planning mode. I want to retire at 58, but I could not get the numbers to add up, particularly between 58 and State Pension age (thinking my only real option was the annuity route). The flexible draw-down option is what I was missing, where the bulk of the money continues to achieve a return (hopefully!). I've suddenly gone from thinking the numbers don't work to thinking they very much do. We'll probably want to draw down more from 58 to State Pension age, and then reduce the draw down when State Pension kicks in.