Income Drawdown option

You don't have to buy an annuity as soon as you retire - you can choose to keep your money invested and take an income in the meantime through Income Drawdown (also sometimes referred to as taking an 'unsecured pension' or 'pension fund withdrawal').

Our Income Drawdown option is part of our Flexible Retirement Plan and gives you the opportunity to receive money from your pension fund, until you are ready to buy your annuity. It is generally for people with larger funds or other sources of retirement income that may be willing to take a higher degree of risk. For this reason, it is only available through a financial adviser.

The minimum investment we can accept is £37,500, after any tax-free cash has been taken, but this can vary depending on your circumstances so it's best to discuss with your adviser.

Benefits of our Income Drawdown option

• Allows you to delay buying your annuity up to age 75, but still receive some income in the meantime.
• Gives you the flexibility to vary how much income you take and when you take it (within limits set by the government).
• You can pass your pension fund on to your dependants if you die, subject to certain conditions.
• Offers you a wider choice of where to invest your money through our range of funds.

Considerations

• If investment returns are poor and a high level of income is taken, the value of your pension fund may be significantly reduced. This could result in a lower income in the future as you will have less to buy an annuity with.
• The amount of income you are allowed to take - your 'income limits' - must be reviewed every five years and can go down as well as up after each review.
• The rates used to calculate your annuity have the potential to worsen as well as improve.

Want to know more?

Income Drawdown is a complex area of retirement planning and isn't suitable for everyone. Our Income Drawdown option, which forms part of our Flexible Retirement Plan, is therefore only available through financial advisers. If you'd like to get in touch with a financial adviser, you can find an adviser online. Note there may be a charge for financial advice.

If you'd like to read more about our Income Drawdown option, please refer to our brochure and key features literature. We've also looked at some case studies to help you decide if an income drawdown plan is right for you.

For general guidance on converting your pension into an annuity, please see our annuities guide where you'll also find answers to our most frequently asked questions.

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Terms and Conditions (pdf 435k)