Skip to content
moneyguideMake your next move count. Search
Menu
UK money guidance. Clear answers. Practical next steps.Partner offers are labelled Ad. How we make money
Glossary · Pensions

Drawdown (pension)

Links marked * are commercial or go to our partner sites, which share our operator. Third-party companies may pay us commission. How we make money.

Content updated:

By the Money Guide editorial team · Editorial responsibility: Kaiser Khan, Editorial Director · How we check facts

Definition: Taking flexible income from a defined-contribution pension while the remainder stays invested.

From age 55 (rising to 57 in 2028) you can usually take 25% as a tax-free lump sum and move the rest into drawdown. Withdrawals are taxed as income. Triggering taxable drawdown reduces your annual allowance to £10,000 (the MPAA).

Related

More Pensions terms

← All glossary terms