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Income Drawdown

One of the most popular ways to take money from a pension pot is through Income Drawdown, which is available once you reach 55 (57 from 2028).

You’re in control and you have the flexibility to increase and decrease the amounts you take and can stop and restart income withdrawals to suit your circumstances.

You need to consider the advantages and disadvantages before deciding what to do.

We have a detailed guide about Income Drawdown which you can pick up at your local agency office or you can speak to an NFU Mutual Financial Adviser who will help you review your options to decide if Income Drawdown is right for you. 

Here are just some of the key issues to consider:


  • Your pension fund remains invested
  • Tax efficient growth potential
  • Flexibility
  • You choose your income payments
  • Investment choice
  • On death any remaining funds can be passed on


  • The value of your pension pot could fall
  • Any income taken assessed for income tax
  • You could run out of money
  • You’ll need to monitor your investments regularly
  • If you die after 75 there could be a tax charge when your beneficiaries take money out
  • Restrictions on the amount of pension contributions you or your employer can  make

More useful information

Remember that shopping around and reviewing the pension products available from different providers will help you to choose a pension product or withdrawal option which best suits your needs and circumstances and may offer a higher level of retirement income.