Pension Drawdown & Retirement Income
Turning a defined contribution pension pot into a retirement income is one of the biggest financial decisions you will make. These guides cover drawdown, annuities, the 25% tax-free cash, and what a sustainable withdrawal rate might look like.
Guides in this section
- Pension drawdown explained
What flexi-access drawdown is, how it differs from an annuity, the tax rules, and the risks of running your pension pot down too fast.
- £100,000 pension pot: how much income will it give me?
Indicative income figures for a £100k pension pot using drawdown and annuity, plus what a sustainable withdrawal rate might look like.
- £250,000 pension pot: how much income?
How long a £250,000 pension pot might last in drawdown, plus example annuity rates and how the 25% tax-free lump sum changes the maths.
- £500,000 pension pot: how much income?
Worked examples for a £500k pension pot: drawdown income, annuity rates, and the tax you might pay each year.
- Drawdown vs annuity: which is right for you?
A side-by-side comparison of pension drawdown and annuities — flexibility, longevity risk, tax and what happens to your money when you die.
- What is a safe withdrawal rate in the UK?
The 4% rule, why UK retirees may need a lower figure, and how sequence-of-returns risk affects how much you can draw each year.
- Taking your 25% tax-free pension lump sum
How the pension tax-free cash works, the lump sum allowance, and worked examples of taking it all at once vs in slices.