Skip to content
£ moneyguide
Glossary · Pensions

Drawdown (pension)

Where a link is marked *, it is a partner link — we receive commission at no extra cost to you. Links without a * earn us nothing. How we make money.

Last reviewed:

Definition: Taking flexible income from a defined-contribution pension while the remainder stays invested.

From age 55 (rising to 57 in 2028) you can usually take 25% as a tax-free lump sum and move the rest into drawdown. Withdrawals are taxed as income. Triggering taxable drawdown reduces your annual allowance to £10,000 (the MPAA).

Related on Money Guide

More Pensions terms

← All glossary terms