Glossary · Pensions
Drawdown (pension)
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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).