Taking a flexible income: Drawdown vs lump sums
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Interested in taking a flexible income, but unsure which option to choose?
Our guide explains both options in plain English, including:
- How each option works
- The benefits and risks
- How income withdrawals are taxed
The guide could help you to make your own informed decisions with confidence, but it is not personal advice on what you should do.
Drawdown and lump sum withdrawals are higher risk options than an annuity. Income is not secure and the value of your investments can go down as well as up so you could get back less than you invest. Tax rules can change and the value of any benefits will depend on individual circumstances.