Pension drawdown

A flexible way to keep your pension invested, while taking an income from it

When you retire, you’ll have a range of options available that allow you to access the money you saved up in your pension over the years.

Pension drawdown is one of the most popular options, because it can provide a flexible retirement in terms of how and when you take your income, while leaving the remainder of your retirement fund invested – and therefore able to continue growing.

Many people value choice in their retirement, in terms of how much money they take from their pension fund, and when. For example, you may need more or less pension income at different stages. You may start off semi-retired (and keep earning alongside your retirement income), your spending may go up or down over time, or you may develop expensive care needs.

This could make the flexibility offered by a drawdown arrangement preferable over an annuity contract, which provides a guaranteed annual income but cannot be changed at a later date.

But pension drawdown isn't right for everyone...

Alongside the advantages of pension drawdown, there are some potential drawbacks too. One of the most obvious disadvantages is that because the fund remains invested, its value can fall as well as rise.

The impact of any losses to your fund will be made worse by the fact you’ll be taking money out of it, and it will have less time and capacity to recover from those losses. You will also be exposed to tax charges and pension contribution limits, and you may need to pay for regular reviews to ensure your arrangements remain up-to-date.

Pension drawdown isn’t automatically available or appropriate for everyone, so it’s important to speak to a professional financial adviser before deciding the best way of taking your pension.

Articles related to

Pension drawdown

What our clients say

Find an adviser

Where and how we meet depends on whatever’s most convenient for you, but we have a number of locations around the UK if you’d prefer to come to us.

Find an Adviser

Other services we offer

We provide a complete range of financial services with specialists in every category so that we can match you with the most suited adviser for your needs

Small, but important print

Registration Number 03776035
Registered in England and Wales

Amber River Group Limited is not authorised to give financial advice. The financial planning businesses who are part of the Amber River Group are separately authorised businesses and therefore able to give advice.

You’ll find details of the regulated status of our firms, including FCA numbers and links to the Financial Services Register on each of the location pages in the ‘Find an adviser’ section.

The Financial Conduct Authority does not regulate National Savings or some forms of mortgage, tax planning, taxation and trust advice, offshore investments or school fees planning.

The information contained within this site is subject to the UK regulatory regime and therefore targeted primarily at UK-based consumers.

The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Find full details of the FOS at

Please read our Privacy Statement before completing any enquiry form or emailing us.