What is income drawdown?

Income drawdown is the process of drawing an income directly from your fund as opposed to using it to buy an annuity.
Your fund remains invested. It gives you more flexibility although it is higher risk.
There is no minimum income that has to be drawn and the maximum is approximately in line with a single life annuity that could have been purchased (reviewed at least every 3 years).
There is also a flexible drawdown option that, providing you meet certain set criteria, will allow you to make unlimited withdrawals
An income drawdown policy can be used to purchase an annuity at any time.
Hargreaves Lansdown offers an income drawdown option from the award winning Vantage SIPP.