What is Drawdown?
When the time comes to use your pension, you can choose to put some or all of your retirement savings into a drawdown scheme, rather than purchasing an annuity that gives a guaranteed income. A drawdown scheme allows you to leave your pension funds invested; you can get access to some or all of them when you need to spend the money. This is known as Flexible Access Drawdown (FAD). Unlike with an annuity, the money remains yours. You’ll pay annual charges on the amount of money that remains invested.