Phased Retirement
Also known as staggered investing, this is the principle of 'phasing in' an individual's retirement income by drawing only a portion of the total pension fund value each year to take up to 25% tax-free cash and the remainder to purchase an annuity that will, in turn, provide an income.
An individual's income in retirement may, thereby, be increased each year according to his/her income requirements by the purchase of a suitable amount of annuity.
This principle takes advantage of the fact that the remaining pension fund should continue to grow and also that annuity rates usually get better as an individual gets older.
In addition, in the event of the death of the individual, any remaining pension fund value should remain free of inheritance tax and income tax liabilities.