UFPLS v Drawdown

[Skyedriver]

Essentially these appear very similar. Are there any benefits or disadvantages of one against the other?
I've been taking UFPLS sums for the last 6 years, looking at minimising any reduction in the 25% tax free part.
Thanks for any simple explanations.

[Rufus Stone]

The 25% tax free cash won't be changing.

[Skyedriver]

Rufus Stone said:

The 25% tax free cash won't be changing.

Promise?

[Rufus Stone]

Skyedriver said:

Promise?

Yes.

[Skyedriver]

Rufus Stone said:

Skyedriver said:

Promise?

Yes.

You're not Rachel or Keir by any chance are you?

[PistonHead007]

UFPLS
- Better suited to adhoc withdrawals.
- Always 25% tax free and 75% taxable.
- Therefore only an option when you have some Lump Sum Allowance left.
- Often available on older schemes where drawdown isn't an option, but can be limited to full encashment or two payments for example.

Drawdown
- Allows you to take tax free cash and keep the other 75% taxable in the pension. No requirement to draw on it.
- Can be setup to pay regular sums.
- Full tax free cash up front and more modest payments to follow is a common strategy if you need all the TFC but not all the rest.

[Skyedriver]

PistonHead007 said:

UFPLS
- Better suited to adhoc withdrawals.
- Always 25% tax free and 75% taxable.
- Therefore only an option when you have some Lump Sum Allowance left.
- Often available on older schemes where drawdown isn't an option, but can be limited to full encashment or two payments for example.

Drawdown
- Allows you to take tax free cash and keep the other 75% taxable in the pension. No requirement to draw on it.
- Can be setup to pay regular sums.
- Full tax free cash up front and more modest payments to follow is a common strategy if you need all the TFC but not all the rest.

Thanks for that, the main benefit is the TFC up front.
Don't require that unless it's to avoid any reduction in the 25%.