What is Pension Drawdown?

Giving you a flexible income

Our Personal Pension Drawdown is a flexible way to access your pension when you're aged 55 or over. It allows you to take your tax-free cash and enjoy the flexibility of how and when you withdraw the remaining money. You need to have a Defined Contribution pension to apply.

 

  • Access your tax-free cash

    After you transfer into the pension drawdown we’ll pay the tax-free cash sum.

  • A flexible income

    You're in control of how much you take and when. You could choose to take a regular or occasional income, or no income at all.

  • Simple investment choices

    Choose one of four objectives for what you would like to do with your money within five years and the objective you choose will be linked to an investment solution.

  • Am I eligible?

    You must be aged 55 or over and have a Defined Contribution pension (also known as Money Purchase) with a value of at least £1,000. We can't accept pensions that are already in drawdown so you must not have accessed the tax-free cash from your pension yet. We can only accept transfers of your full pension pot.

  • I want control over my pension

    If you're happy to choose one of four objectives which will be linked to an investment solution, this option may be right for you.

  • I want a flexible income

    If you don’t need a guaranteed income and want to have the flexibility to dip into your pension when it suits you, this product may be right for you.

  • Your income is taxable

    After you've taken your tax-free cash, any income you take will be subject to income tax.

  • 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 can go down as well as up. Inflation can also affect the value of your pension.

  • 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.

  • Transferring your pension may affect your guaranteed benefits

    When you transfer a pension to us you could lose guaranteed benefits from your existing pension provider. You should check with them before you apply.

Investment pathways are a way for you to select the funds that you are investing in when you are in drawdown. You choose one of four objectives for what you would like to do with your money within 5 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 5 years Multi-Index 5 Fund Download PDF
I plan to use my money to set up a guaranteed income (annuity) within the next 5 years Sterling Corporate Bond Index Fund Download PDF
I plan to start taking my money as a long-term income within the next 5 years Multi-Index 4 Fund Download PDF
I plan to take out all my money within the next 5 years Short Dated Sterling Corporate Bond Index Fund Download PDF

Finding out how long your money may last

To get an idea of how long your money may last in pension drawdown, you can use our online application to get a personalised illustration.

You can change the amount and frequency of the income payments as many times as you like using the edit buttons, and compare the results to find the right option for you. After you've applied you can make changes to your income at any point.

Apply online

Common questions...

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 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 risks, up or down? No No No Yes
Actions Find out more Find out more Find out more

Ready to apply online?

If you know what you want and have your paperwork to hand, you can apply for a Pension Drawdown online today.

Apply online