What is pension drawdown?

Drawdown is one of the most flexible ways to access your pension. This simple guide will introduce you to the risks and benefits of drawdown and offer some great resources to help you decide if it could be right for you. You'll learn:

• What drawdown is, and how it works
• How drawdown compares to an annuity and lump sum payments
• How to invest in drawdown
• What income strategies to consider
• Why partial drawdown could be a good idea
• How to pass your pension on to family or friends

This guide is not personal advice. If you're unsure, please seek advice. What you do with your pension is an important decision, which could be irreversible. Drawdown is a higher risk option than an annuity. You should check you're making the right decision for your circumstances and that you understand your options and the risks. Take appropriate advice or guidance if you are unsure.

The Government's free Pension Wise service can help. It provides impartial guidance face-to-face, online or by phone - more on Pension Wise. If you choose to invest, remember that investments can go down as well as up in value, so you could get back less than you put in. Pension and tax rules can change, and their benefits depend on your circumstances.