7 traps for drawdown and tips to avoid them
A must-read for anyone thinking about drawdown
Deciding what to do with your pension is an especially important decision, and one that shouldn’t be made lightly. It's important you understand all the potential pitfalls as well as the steps you can take to avoid them.
Our easy-to-follow factsheet isn't personal advice, but it explains:
- The traps that can cost thousands for unsuspecting drawdown investors
- Tips for picking the best drawdown provider
- How to avoid paying more tax than you need to
This factsheet is not personal advice. If you are unsure, please seek advice. What you do with your pension is an important decision, which could be irreversible. Drawdown is a higher risk option than an annuity. You should check you're making the right decision for your circumstances and that you understand your options and the risks. Make sure you understand your options and check they are suitable for your circumstances: take appropriate advice or guidance if you are unsure.
The Government's free Pension Wise service can help. It provides impartial guidance face-to-face, online or by phone - more on Pension Wise. Investments can go down as well as up in value, so you could get back less than you put in. Pension and tax rules can change, and their benefits depend on your circumstances.