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 is not personal advice. What you do with your pension is an important decision, which could be irreversible. Drawdown and lump sum withdrawals are higher risk options than an annuity. You should check you're making the right decision for your circumstances and that you understand your options and the risks.
The government's free and impartial Pension Wise service can help you and we can offer you advice. Income is not secure and the value of your investments can rise as well as fall so you could get back less than you invest. Tax rules can change, and their benefits depend on your circumstances.