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Flexi Access Drawdown (FAD) is a drawdown option that became available on the 6th April 2015. It allows you to continue to invest your SIPP or SSAS while drawing an income from it. There is no maximum limit on the annual amount of income that you can draw up to and including taking the whole FAD fund. The minimum is nil, meaning that you do not have to draw any pension if you do not wish to. All FAD payments are taxed as earned income.

You can draw your pension income through regular payments (either monthly, quarterly, half yearly or annually). You can also take one-off payments as and when needed and you can change the level you are taking at any time.

Taking an income under FAD will trigger the Money Purchase Annual Allowance (MPAA) rules (outlined in the contributions section) which will reduce your annual allowance from £60,000 to £10,000 per annum for money purchase savings.

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