
Flexible income, also known as Drawdown
If you're 55 or older, you can access up to 25% tax-free cash from your pension pot and invest the rest
Is Pension Drawdown right for me?
Pension Drawdown calculator
Our Pension Drawdown calculator helps you see how much income you could receive with pension drawdown, and allows you to compare this with the income you could receive from a pension annuity. You don't need to include any final salary pensions or your state pension.
Three steps to Drawdown
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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 your plan will depend on your circumstances, and may change in the future. A reduced Annual Allowance will apply once you start to take an income from your pension (but won't apply if you're just taking tax-free cash). -
Your state benefits could be affected
This plan could affect your entitlement to any means tested state benefits. -
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. -
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. -
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.
Investment pathways are a way for you to select the funds that you're investing in when you're in drawdown. You choose one of four objectives for what you would like to do with your money within the next five years and the objective you choose will be linked to an investment solution. When you choose your investment pathway, you won't be locked in and can change it at any time. There's also more detail on the objectives themselves within the application.
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 |
Need some help?
There are different retirement income products to choose from and the rates they offer can vary. Shop around to make sure you get the best deal for your situation and use available guidance and advice services before you apply. Other providers may have more appropriate products or be able to offer a higher level of retirement income.

Retirement guidance
Pension Wise from MoneyHelper
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The availability of appointments can vary between a few days and several weeks, so if you need guidance, it's a good idea to book an appointment slot now:
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Get financial advice
Financial advisers can give you professional advice for pension planning.
You usually need to pay for their service and in return they recommend how to make the most of your pension given your circumstances.
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