Soon we’ll not be supporting this browser anymore.
This means our website may not look and work as you would expect. Read more about browsers and how to update them here.

Skip to main content
  • Register
  • Help
  • Contact us

Taking a flexible income: Drawdown vs Lump sums

Taking a flexible income: Drawdown vs Lump sums

Interested in taking a flexible income, but unsure which option to choose?

Interested in taking a flexible income, but unsure which option to choose?

If you want to take money from your pension and you’re looking for flexibility, you may consider drawdown or taking lump sum withdrawals. Our guide explains both options in plain English, including:

  • How each option works
  • The benefits and risks
  • How income withdrawals are taxed

This guide is not personal advice.

Drawdown vs lump sums guide

Please correct the following errors before you continue:

    Existing client? Please log in to your account to automatically fill in the details below.

    Address not shown above? Enter your address manually
    This literature is for UK investors only. We are not authorised to send our literature to areas outside the jurisdiction of UK regulation and will be unable to send this literature to any address in the Channel Islands or outside the UK.




    Loading

    Please confirm that you wish to continue:

    Loading

    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.

    Interested in taking a flexible income, but unsure which option to choose?

    If you want to take money from your pension and you’re looking for flexibility, you may consider drawdown or taking lump sum withdrawals.

    Our guide explains both options in plain English, including:

    • How each option works
    • The benefits and risks
    • How income withdrawals are taxed

    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.

    HL SIPP awards