Flexible. Tax-efficient. Tailored to your needs. With Income Drawdown, you hold the reins of your retirement, deciding how and when to use your pension pot.
Tailored Pension Private Freedom for Retirees
Income Drawdown is one of the most popular options for managing your pension pot from age 55 (or 57 from 2028). Unlike an annuity, it keeps your pension invested, offering greater flexibility to withdraw funds as needed and adapt to life’s changes.
It’s suited for retirees who value control and the opportunity for potential growth, but it requires careful management to ensure your pension lasts. With expert advice, this option can help you maximise your retirement.
Why Choose Income Drawdown?
Stay Invested
Your pension pot remains invested, giving it the potential to grow..
Flexible Withdrawals
Generally, the older you are, the more you can release.
Tax Advantages
Access up to 25% of your pension tax-free.
Tailored Investments
Choose how your pension is invested to match your risk tolerance and goals.
Pass on Your Pension
Funds can be transferred to loved ones tax-free if you pass away before 75.
Is Income Drawdown Right for You?
Deciding how to manage your pension pot is a critical step for your financial future. Income Drawdown offers unparalleled flexibility but also requires active management to prevent the risk of depleting your funds too soon. That’s why expert guidance is vital.
The Pros
- Unmatched Flexibility – Adjust withdrawals as life changes.
- Investment Growth – Benefit from favourable market performance.
- Peace of Mind for Loved Ones – Transfer funds tax-free if you pass before 75.
The Cons
- Market Risk – Your pension’s value can decrease in poor market conditions.
- No Guaranteed Income – Unlike annuities, your pension isn’t fixed.
- Ongoing Effort – Requires regular reviews and adjustments.
By choosing Income Drawdown, you’re keeping your financial future adaptable and growth-focused while staying prepared for potential risks.
Want to Know if It’s the Best Option for You?
How Does Income Drawdown Work?
At Senior Wise, we guide individuals and families through the maze of retirement planning, helping ensure you get the retirement you deserve. Here’s how our process works:
01
Keep your pension invested in shares, bonds, or cash, allowing it to grow.
02
Withdraw funds flexibly to suit your retirement needs.
03
Monitor your investments to ensure you’re making the most of your pension.
With the right approach, Income Drawdown is a powerful tool for achieving financial freedom in retirement
Frequently Asked Questions
Can I switch to an annuity later?
Yes, you can use the remaining balance of your pension to purchase an annuity at any time.
Will my pension pot grow?
While investments offer growth potential, they can also decrease in value based on market performance.
What is the tax situation?
25% of your withdrawal can be tax-free. Beyond this, withdrawals are taxed as income, so planning is key.
Do I need a financial adviser?
Income Drawdown involves ongoing investment management and financial decisions. Speaking with a qualified adviser ensures you make well-informed choices.
Secure a Flexible Retirement Today
With Income Drawdown, you can take control of your pension with confidence. Enjoy the freedom to access your funds on your terms while keeping them invested for long-term growth.
Don’t leave your retirement to chance—speak to our expert advisers today for personalised guidance.