Drawdown

A flexible way to take cash from your pension

A yellow circle with a downward arrow inside it

Free withdrawals

There's no drawdown costs unless you transfer to us and take your whole pot within 12 months

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Experienced money managers

Plans from BlackRock, State Street Global Advisors, Legal & General and HSBC

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UK-based support

Our friendly BeeKeepers are always on hand to help, no matter what the question

Important: With investment, your capital is at risk. Pensions can go down in value as well as up, so you could get back less than you invest.

What is drawdown?

Drawdown is one of the options for taking your pension when you reach retirement. It means leaving your pension money invested, and taking cash as and when you need it.

Drawdown doesn't give you a guaranteed income like an annuity, but it does provide more flexibility.

The size of your pension pot can grow or reduce, depending on how your investments perform, and you're not restricted on what you can withdraw.

A woman with blonde curly hair wearing a blue longed sleeved top standing in a living room, overlayed is a yellow triangle play button
A woman with blonde curly hair wearing a blue longed sleeved top standing in a living room, overlayed is a yellow triangle play button

Watch our video explainer to find out more about drawdown

How does drawdown work?

Drawdown becomes available from the age of 55, and at this point you can take up to 25% of your pension totally tax-free - as a lump sum or in portions.

The rest will stay invested and can be withdrawn as you wish, but you'll pay income tax on anything you take over your 25% tax-free amount.

Watch our video explainer to find out more about drawdown tax, or try our drawdown calculator to see what a PensionBee withdrawal could look like.

Use our drawdown calculator
A yellow graph against a blue background, with a yellow triangle play button and the words 'How do I pay pension drawdown tax?' layered on top
A yellow graph against a blue background, with a yellow triangle play button and the words 'How do I pay pension drawdown tax?' layered on top

Watch our video explainer to find out more about drawdown tax

The pros and cons of drawdown

How you decide to take your pension is a big decision, so before you start the drawdown process it's essential to consider the pros and cons.

Watch personal finance journalist and money blogger, Faith Archer, explain whether drawdown might make sense for you.

A woman with curly blonde hair wearing a blue long sleeved top sits casually on a sofa, overlayered is a yellow play triangle and the words 'What are the pros and cons of drawdown'.
A woman with curly blonde hair wearing a blue long sleeved top sits casually on a sofa, overlayered is a yellow play triangle and the words 'What are the pros and cons of drawdown'.

Find out more about the pros and cons of drawdown

Picking a drawdown plan

If you plan to drawdown, it's important to ensure that you're in a plan that matches your retirement objectives. At PensionBee we offer three plans designed specifically for drawdown customers - Tracker, 4Plus and Preserve.

See more of our plans

Why drawdown with PensionBee?

Add Money to your pension

Combine and take control

PensionBee combines all your old pensions into one new online plan. This helps make drawdown much easier, as all your money is together.

There's no drawdown costs unless you take your entire pot within 12 months*, and we'll only charge you one fair annual fee to manage your pension.

*If your pot has been with PensionBee for less than a year and you wish to withdraw it in full, then a full withdrawal fee of £480 applies. This fee will also be charged if the value of your account is less than the £480 fee at the point of withdrawal.

The pending transfer window for a desktop showing pension transfers in progress
The pending transfer window for a desktop showing pension transfers in progress
The pending transfer window for a desktop showing pension transfers in progress
A blue pound sign

Access your cash quickly

There's no forms to sign as everything is done digitally, including your emergency tax payment to HMRC. Paying out your cash typically takes 7-10 working days.

The beehive homepage with an arrow hovering over the withdrawals tab
The beehive homepage with an arrow hovering over the withdrawals tab
The beehive homepage with an arrow hovering over the withdrawals tab
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UK-based support

Every PensionBee customer gets their own dedicated BeeKeeper.

They'll be on hand to answer any questions you might have, throughout the drawdown process.

A blonde woman wearing a black top is answering a phone using a headset
A blonde woman wearing a black top is answering a phone using a headset
A blonde woman wearing a black top is answering a phone using a headset
A blue pie chart with a quarter segment being removed

Invest with the experts

Our pensions are managed by some of the world's largest money managers — State Street Global Advisors, HSBC, BlackRock and Legal & General — so your money's in experienced hands.

Logos of our investors arranged in circles. HSBC, Legal & General, State Street Global Advisors and BlackRock
Logos of our investors arranged in circles. HSBC, Legal & General, State Street Global Advisors and BlackRock
Logos of our investors arranged in circles. HSBC, Legal & General, State Street Global Advisors and BlackRock
See how we've helped Tony prepare for retirement.
See how we've helped Tony prepare for retirement
Mobile phone showing drawdown calculator Mobile phone showing retirement planner Mobile phone showing drawdown calculator

Looking to Drawdown?

Combine your pension pots into one new online plan & withdraw online from the age of 55.

Get started

Capital at Risk

Have a question? Call our UK team 020 3457 8444

Have a question?

Call our UK team

020 3457 8444

Monday-Wednesday 9:30am-6pm, Thursday-Friday 9:30am-5pm

Monday-Wednesday 9:30am-6pm
Thursday-Friday 9:30am-5pm