Pension drawdown | Flexible Drawdown Pension

Pension drawdown

A flexible way to take cash from your pension (from age 55 rising to 57 from 2028).

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What’s pension drawdown?

Drawdown's one of the options for taking your pension in retirement. From the age of 55 (rising to 57 from 2028), you can take up to 25% of your pension tax-free - either as a lump sum or in portions. The rest will stay invested but you'll pay Income Tax when you come to withdraw any of the remaining 75%.

With PensionBee, there are two ways to withdraw. Either by setting up Regular withdrawals, or taking one-off payments.

More about pension drawdown

More about drawdown

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.

Mobile screen showing a financial app confirming withdrawal details with tax-free cash of £100,000, taxable cash of £25,000, and a 25% currency tax deducted highlighted in red.

Flexible withdrawals to suit your goals

Skip the manual work with automatic monthly withdrawals

If you prefer a more hands-off approach, set up automatic monthly payments. Choose the amount and the date, and your money will land in your bank account each month without repeated steps.

Flexible withdrawals to suit your goals

Skip the manual work with automatic monthly withdrawals

If you prefer a more hands-off approach, set up automatic monthly payments. Choose the amount and the date, and your money will land in your bank account each month without repeated steps.

The pros and cons of pension drawdown

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

*PensionBee doesn’t charge a drawdown cost unless you take your entire pot within 12 months. 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.

Pros

Take 25% of your money tax-free

Your money stays invested with the opportunity to grow

Withdraw as and when you need to

Cons

Your income isn’t guaranteed, like an annuity

Your pot's value could go down as well as up

You're responsible for making sure your money lasts throughout retirement

Why drawdown with PensionBee?

Combine and take control

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

Simple and stress-free withdrawals

Access your cash online in a way that suits you. You can set up Regular withdrawals and receive automatic payments each month or, make one-off pension withdrawals as and when you need to.

UK-based support

Every PensionBee customer gets a personal account manager - your ‘BeeKeeper’. They'll be on hand to answer any questions you might have, throughout the drawdown process.

Investment Pathways

We offer four Investment Pathways that can help you see whether your pension plan matches your retirement goals.

You’re not obligated to pick a specific pathway, and you can make withdrawals from any of our plans if you feel they better suit your goals and needs. If your plans change you can still make withdrawals but you’ll have to consider if that is still the right choice for you.

Option 1

I have no plans to touch my money in the next 5 years.

Tracker

Invests your money in global shares and bonds to offer growth and diversification. Investments follow the world’s markets as they move.

Medium Risk

0.50% Fee

Asset Allocation:

80% equities, 20% fixed income

Option 2

I plan to use my money to set up a guaranteed income (annuity) within the next 5 years.

4Plus

Aims to achieve long-term growth of 4% per year above the cash rate, to provide a sustainable withdrawal rate before annuity purchase.

Medium Risk

0.50% Fee

Asset Allocation:

Varies as fund is actively managed

Option 3

I plan to start taking my money as a long-term income within the next 5 years.

4Plus

Aims to achieve long-term growth of 4% per year above the cash rate, by managing your money actively across a range of investments.

Medium Risk

0.50% Fee

Asset Allocation:

Varies as fund is actively managed

Option 4

I plan to take out all my money within the next 5 years.

Preserve

Makes short-term investments into creditworthy companies. This reduces risk and preserves your money.

Lower Risk

0.50% Fee

Asset Allocation:

100% fixed income

Option 1

I have no plans to touch my money in the next 5 years.

Option 2

I plan to use my money to set up a guaranteed income (annuity) within the next 5 years.

Option 3

I plan to start taking my money as a long-term income within the next 5 years.

Option 4

I plan to take out all my money within the next 5 years.

Tracker

Invests your money in global shares and bonds to offer growth and diversification. Investments follow the world’s markets as they move.

Medium Risk

0.50% Fee

Asset allocation

80% equities, 20% fixed income

4Plus

Aims to achieve long-term growth of 4% per year above the cash rate, to provide a sustainable withdrawal rate before annuity purchase.

Medium Risk

0.85% Fee

Asset allocation

Varies as fund is actively managed.

4Plus

Aims to achieve long-term growth of 4% per year above the cash rate, by managing your money actively across a range of investments.

Medium Risk

0.85% Fee

Asset allocation

Varies as fund is actively managed.

Preserve

Makes short-term investments into creditworthy companies. This reduces risk and preserves your money.
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Lower Risk

0.50% Fee

Asset allocation

100% fixed income

Our pensions are managed by some of the world's largest money managers - State Street, HSBC and BlackRock - so your money's in experienced hands.

How does it work?

Watch our video explainer to learn how pension drawdown with PensionBee works. Get a clear, simple overview of your options and understand how your pot stays invested while you flexibly withdraw your money.

What is pension drawdown?

2 min

What’s pension drawdown?

Flexible withdrawals to suit your goals

Flexible withdrawals to suit your goals

The pros and cons of pension drawdown

Why drawdown with PensionBee?

Combine and take control

Simple and stress-free withdrawals

UK-based support

Investment Pathways

Looking to drawdown?