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My client has a Defined Benefit (DB) scheme and was receiving income of £5,000, from age 61 to 65. It clearly shows the £5,000 but then it drops to £4,577 from age 66 under the drawdown. Why is this?


This is because their total income was under the income tax personal allowance between ages 61 and 65. Then at age 66 when they start receiving their State Pension, they now have to pay income tax and it is the DB pension that bears the liability.

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