Pension drawdown

A flexible way to take cash from your pension from 55 (rising to 57 in 2028). Take up to 25% of your pension pot tax-free and leave the rest invested to withdraw when you decide.

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Free withdrawals

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

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Invest with 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.

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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 draw down process.

Important: With investments, 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's pension drawdown?

Drawdown's 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.

Pension 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 pension drawdown work?

Pension drawdown becomes available from the age of 55 (57 from 2028), 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The rest will stay invested and can be withdrawn as you wish, but you'll pay income tax on anything you take over your 25% tax-free amount.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

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 charge one simple annual fee of between 0.50% and 0.95% 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 £150 applies. This fee will also be charged if the value of your account is less than the £150 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
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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 10 working days.

Withdrawal summary showing tax free cash
Withdrawal summary showing tax free cash
A red telephone

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

Looking to draw down?

Combine your pension pots into one new online plan & withdraw online from the age of 55 (rising to 57 from 2028).

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Mobile PensionBee analytics chart
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