Drawdown vs Lump Sums
Interested in taking a flexible pension income?
With both drawdown and lump sums to choose from, you might be wondering which one’s best for you. Download our guide to learn:
- The risks and benefits of each option
- How income is taxed – with simple examples
- How to make sure your essential costs are covered
This guide could help you to make your own informed decisions with confidence, but it’s not personal advice. Drawdown and lump sum withdrawals are higher risk options than an annuity (which provides a guaranteed income for life). The value of your investments can go down as well as up, so your income isn’t secure and you could get back less than you invest. Pension and tax rules can change, and their benefits will depend on your individual circumstances.