What is Pension Drawdown?
Pension drawdown is a way to take income from your pension pot after you reach age 55 (age 57 from April 2028). You access up to 25% cash tax-free and keep the rest in your pot invested until you need it.
As a Legal & General Stakeholder Pension customer you can move your pot into a Pension Drawdown so you can have easy access to a flexible income in your retirement.
If you're 50 or over, you should consider having a free Pension Wise appointment, before you decide how to access your pension.
As with all investments your funds can go down in value as well as up and you may get back less than you've paid in.

Results
The example below gives you an idea of the income our pension drawdown product might provide. It assumes you take the maximum 25% tax-free cash sum available but you can choose to take less. The result is an example only and is not advice. The actual income you can get will depend on your individual circumstances.
Flexible income you can take when you want, it's not guaranteed
Pension Drawdown
- You decide the amount of income and when it’s paid
- The value of your pension can go up or down and you could get back less than you paid in
- Income isn't guaranteed, you could run out of money
The 'Annual income' figure shows the amount before any tax has been deducted. You can change it using the drop-down – the more you take, the less time your money will last. You can see the effect of three different rates of return on the size of your pot by using the 'Investment return' drop-down.
Guaranteed income for the rest of your life
Pension Annuity
- Can pay higher income for health conditions and lifestyle risks.
- Can provide an income for your spouse, civil partner or beneficiary after you die.
- Can’t change your options once the plan has started.
The figure above shows the gross income before any tax is deducted.
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- The income you draw down is taxable
Any income you take will be subject to income tax. The amount of tax you pay on income from the plan will depend on your circumstances, and may change in the future.
- Your state benefits could be affected
This plan could affect your entitlement to any means tested state benefits.
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The value of your pension pot is not guaranteed
The value of your pension pot isn’t guaranteed and will depend on several things such as how much you pay in and when you choose to take your money. It’s also important to note the value of your pension pot can go down as well as up. Further details on the potential risks can be found in the Key Features Document.
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You may run out of money
You should regularly review the amount you are withdrawing. Because your income isn’t guaranteed, if your investment returns do not meet your expectations, if you live longer than expected or if you take too much money out too quickly then you could run out of money.
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There are some costs involved
There are charges for managing your account and charges applied to the investments you hold. We have a service charge of 0.25% of the value of your Pension per year. There is also a Fund Management Charge which differs from fund to fund. More detail on charges can be found below and in the Key Features Document.
Once you have decided to take your tax-free cash, transfer your existing pension pot into Pension Drawdown and choose where to invest the remaining money.
We have four different Investment Pathways for your remaining pension pot depending on what you plan to do with the money in the next five years. Each is linked to a different investment solution. Don’t worry if you change your mind you can move to a different pathway at any time..
The money left invested could grow to replace some or all of the money you draw down, though its value could also drop. If you withdraw too much too soon, you could also run out of money.
Objectives | Investment | Key Investor Information Document |
---|---|---|
I have no plans to touch my money in the next five years | Multi-Index 5 Fund | Download PDF |
I plan to use my money to set up a guaranteed income (annuity) within the next five years | Sterling Corporate Bond Index Fund | Download PDF |
I plan to start taking my money as a long-term income within the next five years | Multi-Index 4 Fund | Download PDF |
I plan to take out all my money within the next five years | Short Dated Sterling Corporate Bond Index Fund | Download PDF |
Ready to access your 25% tax free cash?
Transfer to Drawdown online today. Have your pension details and paperwork to hand to complete your application and get a personalised illustration.
Before applying for Pension Drawdown, make sure you read the documents below.

Retirement income products compared
Guaranteed income (Pension Annuity) | Fixed Term Retirement Plan | Cash-Out Retirement Plan | Flexible income (Pension Drawdown) | |
---|---|---|---|---|
Can it provide a regular pension income? | Yes | Yes | Yes | Yes |
Can I choose a guaranteed income each month? | Yes | Yes | Yes | No |
Is my income guaranteed to last my whole life? | Yes | No | No | No |
Can I change how much I get? | No | No | No | Yes |
Am I exposed to market movements, up or down? | No | No | No | Yes |
Actions | Pension Annuity | Fixed Term Retirement Plan | Cash-Out Retirement Plan | Apply online |