RETIREMENT PLANNING

Income Drawdown

INCOME DRAWDOWN

Using your pension pot for a flexible retirement income

With flexi-access drawdown, when you come to take your pension you reinvest your pot into funds designed to provide you with a regular retirement income. This income may vary depending on the fund’s performance and it isn’t guaranteed for life.

You need to carefully plan how much income you can afford to take under flexi-access drawdown otherwise there’s a risk you’ll run out of money. This could happen if:

  • you take out too much in the early years
  • your investments don’t perform as well as you expect and you don’t adjust the amount you take accordingly
  • you live longer than you’ve planned for

If you choose flexi-access drawdown, it’s important to regularly review your investments.

The value of your investment can go down as well as up and you may not get back the full amount invested.