Guide to Drawdown
One of the most flexible ways to access your pension
If you're getting close to retirement, and looking for a way to dip into your pension, drawdown might be a good option to consider.
This simple guide will introduce you to the risks and benefits of drawdown and offer some great resources to help you decide if it could be right for you. You'll learn:
- What drawdown is, and how it works
- How drawdown compares to an annuity and cash lump sums
- How to invest in drawdown
- What income strategies to consider
- What partial drawdown is
- How to pass your pension on to family or friends
This guide is not personal advice. If you're 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. If you choose to invest, remember that 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.