Drawdown

A flexible way to take cash from your pension

What is drawdown?

Income drawdown is one of the options for using your pension when you reach retirement. It means leaving your pension money invested and taking cash as and when you need it. It’s the main alternative to buying an annuity with your pension money, but it comes with a number of pros and cons so it’s important to weigh these up carefully.

Watch our video explainer to find out more about drawdown.
Watch our video explainer to find out more about drawdown.

Watch our video explainer to find out more about drawdown

How does PensionBee drawdown work?

Our drawdown option becomes available as soon as you reach 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 The remainder will stay invested and can be withdrawn as you wish, but you’ll face income tax on anything you take over your 25% tax-free amount. Try our drawdown calculator to see what a PensionBee withdrawal will look like.

Watch our video explainer to find out more about drawdown tax.
Watch our video explainer to find out more about drawdown tax.

How much does pension drawdown cost?

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

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 drawdown calculator

Looking to Drawdown?

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

Get started

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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