This option allows you to take a regular taxable income from
your pension while the rest remains invested. You’ll also usually be able to get up to
25% of the pension value as a tax free lump sum.
Who’s it for?
Since 2015, this option has been opened to most people and may
be suitable if you want to take money from your pension pot while looking for continued
returns on your investments. It could also be suitable if you're phasing your retirement by reducing your working hours.
There's a real possibility that if you take out too much
from your pension, that you could run out of money and
not be able to sustain an income in retirement.
We've put together a few examples that demonstrate how contributing more to your pension and managing your investments can impact on the pension income you receive.
Sustaining your pension income
Where can I invest my pension when I'm in drawdown?
If you're looking to access your pension savings through drawdown, you'll need to decide which investment funds you'd like your remaining money invested in. This is an important decision so you'll need to ensure that the funds you choose meet your continuing retirement objectives. There are a number of options you may wish to consider. You can:
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Invest using Investment Pathways - you can use investment pathways by transferring to another pension plan with the Phoenix group or with another provider. For more information, take a look at our 'Understanding Investment Pathways' guide.
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Change your investments - we offer a range of funds to invest in, each with its own investment objective. We have fund lists here in our literature library and factsheets in our Fund Information Centre.
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Stay invested as you are - if you don't want to change your investments, you should still review your current investments to make sure they meet your retirement objectives.
How can I find out
more?
We’ve produced a handy guide that gives you the lowdown on
Income drawdown, as well as the other options open to you.
Pension benefits guide