Pension drawdown
Drawdown lets you keep your pension invested and take an income or lump sums from it as you need.
Also known as: pension-drawdown, flexi-access drawdown, income drawdown
Your income is not guaranteed, and your pot could run out if you take too much or investments fall. Taking large amounts can push you into a higher tax band.
Review withdrawals regularly, and consider advice for large pots.
Money left in drawdown stays invested, so its value can rise or fall, and the tax treatment depends on how much you take in a year.
Free, impartial guidance is available from MoneyHelper and Pension Wise. Be wary of any unsolicited offers about your pension or investments.
Related terms
This page provides general information only. It is not personalised financial, legal or tax advice, and rules and figures can change. Your situation is unique — please check official sources such as GOV.UK and MoneyHelper, and speak to a qualified, FCA-authorised adviser before making important decisions about your money.