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 The remainder will stay invested and can be withdrawn as you wish, but you’ll face income tax on anything you take over your 25% tax-free amount.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.* You’ll only pay one annual fee of 0.5-0.95%, plus we’ll halve the fee on any portion of your savings over £100,000.

On your first £100,000

On your savings above £100,000

Tracker

On your first
£100,000

0.5%

On your savings
above £100,000

0.25%

Tailored

On your first
£100,000

0.70%

On your savings
above £100,000

0.35%

Future World

On your first
£100,000

0.95%

On your savings
above £100,000

0.48%

Learn more about our fees

*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 should the value of your account be less than the £480 fee at the point of withdrawal.

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

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