Taking a flexible income: Drawdown vs Lump sums

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:

Delivery preference:

Download Post

Title:

First name:

Last name:

Email address:

Main phone number: (optional)

Mobile phone number: (optional)

Date of birth: (optional)

Title:

First name:

Last name:

Address:

Email address:

Where did you hear about us?

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.

Verified by VeriSign

VeriSign has verified the rightful owner and operator of this web page. The seal verification also shows that this page has passed a daily malware scan.

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