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

Pension drawdown calculator

This calculator helps you see how much income you could receive with pension drawdown. Don't include any final salary pensions or your state pension.

I am years old and I have saved in my pension pots

Results

Total pension pot
£100,000
Tax-free cash 25%
£25,000
Remaining pension pot
£75,000

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

Personal Pension Drawdown

Annual income
Investment return
  • 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.