Flexible access to your pension money
Access your tax-free cash
If you're age 55 or above (rising to 57 in 2028), pension drawdown enables you to take out 25% of your pension money tax free.
Stay invested
Your money is invested in funds within a ready-made portfolio. Choose the portfolio that best suits your investment goals.
Built-in flexibility
Take money out when you need to, or take a regular income. And by planning withdrawals you might pay less income tax.
Watch our video to see how Pension Drawdown works
Learn more about pension drawdown
Drawdown is a flexible way to access your pension savings in retirement. You can take money out as and when you need it. Your pension money stays invested, with the potential to grow in value while you draw an income from it.
Anyone in the UK with a defined contribution pension can opt for a pension drawdown account. Typically, you must be at least 55 years old (rising to 57 from 2028) to access your pension funds.
You can start using your pension savings through pension drawdown from age 55 (rising to 57 in 2028).
You only need to have £50 in pension savings to set up pension drawdown with Destination Retirement.
From age 55 (rising to 57 from April 2028), you can normally withdraw up to 25% of your pension value tax free, up to a maximum of £268,275. (This maximum limit may be higher if you have protections affecting tax-free cash. You might have this protection if you’d previously had a higher entitlement of tax-free cash.) The remaining 75% will be taxed at the usual rate, depending on your income level.
It's important to consider your total income for the year, as large withdrawals could push you into a higher tax bracket.
Drawdown is subject to the Money Purchase Annual Allowance (MPAA). Once you’ve taken taxable money out of your pension, you can only get pension tax relief on up to £10,000 per year of money you put in.
What would you like to do next?
Transfer your pension
If you've been introduced to us by a financial adviser, you should have a link to our transfer form. For more information about the service we offer please contact us.
Looking for impartial guidance?
If you’re age 50 or above you can get free guidance from Pension Wise - a government backed service.
Important information
Remember that the value of your investment can go down as well as up and you could get back less than you invest. The information on this website should not be taken as a recommendation, advice or forecast. However, we do offer regulated financial advice if you're unsure about investing. Ask our Savings Specialists for more information about this service.
The tax you pay will depend on your personal tax position, and tax rules are subject to change by the UK Government. This is not tax advice. If you need more information, please speak to a tax adviser or an accountant.