More about Drawdown Income

Understanding the basics

Watch the video to learn more about how drawdown income works:

  • Drawdown income gives you flexibility

    Take your Defined Contribution (DC) pension pot in a way that suits you. If you transfer your DC pension pot to a drawdown income provider, you can withdraw as much or as little as you like, when you like as regular income or lump sums. And if you change your mind, you can use the money from your drawdown pot to buy an annuity at any time.

  • Take up to 25% of your DC pension pot tax-free after you transfer to a drawdown income provider

    After you transfer your DC pension pot to a drawdown income provider, you can normally take up to 25% tax-free up to the Lifetime Allowance. You can either take it all at once after you transfer or you can take 25% of each withdrawal that you make tax free. The balance will be subject to income tax.

  • Be in control of your investments

    Your drawdown pot will be invested and you will need to choose investments that match your plans for the future. You will need to monitor the performance of your investments and your withdrawals to make sure you don’t run out of money sooner than you expect.

  • Pass it onto your loved ones

    If there is some drawdown pot left over when you die, this can be passed onto your beneficiaries.

Things to think about when choosing your drawdown income provider

If you choose the drawdown income option, you will need to transfer your DC pension pot out of the Scheme to a drawdown income provider. Before you make any decision, it’s important to shop around and make sure you choose a provider that best matches your needs. There are many different providers available.

To help you to start comparing drawdown income providers we have put together this short checklist.

Drawdown Income and tax

What should I do next?

If you are thinking about taking your DC pension pot and would like to get a retirement quote or request a retirement pack, you can do this by logging-in to My Pension. Once logged in, select the Quotes drop down menu. Please note you can only request a retirement quote if you are aged 54 or over.

Alternatively, you can contact the Scheme administrators directly.

Additional help to make your choices

Have you watched a retirement webcast?

Our retirement webcasts are designed for members aged 50 and over, to help you understand more about your retirement income options. Click to watch the full series of Retirement webcasts for members over age 50.

Have you tried our Pension Freedom Planner?

If you want to find out more about how much income you could take using drawdown income, why not login to My Pension and use the modeller called the Pensions Freedom Planner.

Quick links to external help sources

Explore the Retirement Options

Retirement options overview 

There’s plenty to think about when planning for retirement - do you need flexibility or income certainty? Be in control or hands-off? Would a combination of options be better? Our retirement options overview is a great place to start to understand the basics, compare the options and get extra pointers to help you decide.


An annuity provides a secure, regular income for life that you buy from an insurance company.

All Cash 

Take all your DC pension pot as one or two cash lump sums (split between two tax years) from the Scheme.