Income drawdown allows you to take sums out of your pension pot while the rest remains invested. This involves risk and requires ongoing management of investment funds and income levels to avoid spending pension funds too quickly.
While it is advisable for most adults to have a Lasting Power of Attorney (LPA) in place, it is even more important when there is a need to manage funds in an income drawdown plan. The reason is that if you become unable to do this due to accident, illness or loss of mental capacity, in many circumstances, not even a spouse, parent or child would be allowed to make decisions about your financial affairs. This could mean your loved ones would be unable to access your pension funds or other assets so causing financial hardship at an already stressful time.
To avoid having your loved ones apply to the Court of Protection and undergo a potentially long and costly process to gain control of your finances, you should create an LPA while you are fit and healthy to do so.
You can set up an LPA online but we would recommend you discuss this with your solicitor. Alternatively we can introduce you to www.swaynejohnson.com who have expertise in this area.
As usual please get in touch if you need any help.