Income drawdown is one way of taking income from your pension pot without buying an annuity. This is where you move your pension pot into an income drawdown scheme called flexi-access drawdown.
Your money is then placed in various investments and you can draw an income from this that suits you. The Money Advice Service says the scheme can be with your own or another pension provider, and you can continue to contribute to your pension pot if you choose, but there are limits on the amount you can invest each year.
It is generally considered suitable only for people with at least £100,000 in their pension fund.
Note: This content is provided as general background information and should not be taken as legal advice or financial advice for your particular situation. Make sure to get individual advice on your case from your union, a source on our free help page or an independent financial advisor before taking any action.
What is WorkSmart?
A career coach that works for everyone.
Enjoy bite-sized activities delivered to you every week.
Equip yourself with essential skills to be the best you yet.
Get the guidance you need to stay focused and reach your goals.