Income drawdown
Letting you take your pension income in stages
Some people like to work part time instead of retiring completely or have other investments that provide them with an income. Income drawdown could be a suitable route for anyone in these circumstances as it lets you take your pension in stages.
How it works
With income drawdown you don’t use your pension fund to buy an annuity. Instead, your pension fund stays invested and you decide, within limits, how much money you want to take from the fund every year.
Income drawdown gives you greater control over your income and avoids you having to buy an annuity – maybe at a time when annuity rates are poor.
Investment risk
Income drawdown is usually only suitable if you have a large pension fund. Because your money remains invested, there will still be a risk that the value of your fund will fall. Exactly how much risk will depend on what your fund is invested in.
Get advice
If you’re thinking about income drawdown, it’s wise to seek some professional advice from an independent adviser before you take any action.
Get in touch
We’re here to help you cut through the complexities of retirement.
Contact us today for an appointment with one of our Financial Planning Managers.
Call us on
0800 051 1868*
*Minicom 0800 404 6161. Lines are open: Mon to Thurs 8am-8pm, Fri 8am-6pm,
Sat 9am-5pm (excl. public holidays).
Calls may be recorded
Glossary
Still struggling with retirement planning jargon? Check out those tricky terms with our glossary.