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Drawdown investment ideas

Getting your strategy right

With drawdown, you choose where and how to invest, so you’re in control of the money in your pension. Your financial goals, attitude to risk and the costs involved should all come into play when making your decisions. It’s also likely that your plans around how and when to start drawing an income will heavily influence your investment choices.

Remember your pension income in drawdown isn’t secure. Although there is the potential for gains, the value of your investments and the income they produce can rise and fall. It’s possible to get back less than you invest. You’ll need to regularly review your choices to make sure your income and investment strategy continue to meet your needs.

You can find out more about income strategies in our guide to investing in drawdown.

If you've thought about your drawdown goals, but are unsure how to achieve them, you may want to consider drawdown investment pathways. There are four pathways to choose from, and each matches a potential retirement goal with an investment option.

Investment ideas for three drawdown strategies

When looking for investment inspiration it’s important to remember your own goals, and attitude to risk. Funds are often a popular choice, as they are a collection of investments with a specific aim, chosen and run by an expert fund manager.

The individual fund ideas below have been highlighted by our team of experts as promising investment opportunities and aim for either long-term growth, to produce an income or to defend against market falls. They could be considered as part of a portfolio, but remember, past performance isn’t a guide to the future and these ideas aren’t personal advice. You should choose investments based on your own preferences and research. Take investment advice if you’re not sure.

Please always read the key information and fund factsheet, including charges, of any investment before making any decisions.

Keeping a cash buffer

It’s important to have a cash buffer, in or outside of your pension. If the market or the income from your investments fall, you’ll have a cash source to draw an income from. This means you won’t be forced to sell when prices are low.

Holding large amounts of cash does come with its own risks though. Cash can lose value over time if inflation is above interest rates.

More about how much cash you should hold

Why variety can help reduce risk

There’s always some risk with investing, but it’s possible to reduce the impact of the risks you face by making sure you have a good variety of investments.

Different types of investments perform well at different times, and so do different markets around the world. Holding a mixture of investments, across various markets, could help shelter you when some areas don’t perform as well as others.

Learn more about diversification

Guide to investing in drawdown

This guide explains the relationship between investing and taking an income in more detail. It could help to get you thinking about your own strategy and where you might invest.

Download your guide

Guidance, help and advice

Guidance from Pension Wise

Pension Wise is a free, impartial government service for anyone aged 50 or over, with a UK based personal or workplace pension.

It can help you understand what type of pension you have, how you can access your savings and the potential tax implications of each option. But it isn’t financial advice.

More about Pension Wise

Have a question?

Our UK-based helpdesk are here for you six days a week. Our friendly and knowledgeable team are ready to answer your questions no matter how big or small.

Call us on 0117 980 9926

Opening hours
Monday - Friday: 8am - 5pm
Saturday: 9.30am - 12.30pm

Alternatively, view our drawdown FAQs.

Retirement Advice from HL

Not sure if drawdown is right for you, or unsure where to invest? Our financial advisers can give advice on your pensions and work with you to:

  • Feel confident about when and how to take your pension
  • Match all your investments to your personal goals and income strategy
  • Help you plan for later life and Inheritance Tax

Discover retirement advice

Retirement Advice from HL

Not sure if drawdown is right for you, or unsure where to invest? Our financial advisers can give advice on your pensions and work with you to:

  • Feel confident about when and how to take your pension
  • Match all your investments to your personal goals and income strategy
  • Help you plan for later life and Inheritance Tax

Discover retirement advice