Flexi-access drawdown gives you the flexibility to plan your retirement the way you want. You get the freedom to access your pension as and when you like, so you can plan out your retirement to suit your lifestyle.

You can take your tax-free cash lump sum immediately to spend or invest as you wish without the need to take any income at all if this suits your circumstances.

Subject to limits imposed by legislation (with capped drawdown), you will be able to plan in advance the level of income that you wish to take each year, so that you can take into account any other sources of income which may become available to you.

There are products available which offer a level of guaranteed income which is paid regardless of the performance of the investments in your pension fund thereby removing some of the risk involved with Drawdown Pension (albeit at a price and subject to specified conditions being met).

If the Drawdown Pension product is set up within a Self Invested Personal Pension (SIPP) wrapper, this will permit access to a wide range of investments and enable the investments to be rearranged easily if required (and usually more cost effectively than switching between product providers).

With careful planning, flexible access drawdown means you can make the most of your pension whenever suits you. So if you are planning a trip around the world, paying off debts or want to upgrade your home, flexible-access gives you the freedom to do those things while also making sure you have the funds for your entire retirement.

You can usually take up to 25% of your pension fund as a tax-free lump sum. You can structure your income to mitigate liability to personal income tax. By reducing your income in some years, you may be able to avoid a higher rate tax liability.

With flexi access drawdown, you may withdraw an unlimited amount from your pension fund, although all amounts withdrawn will be taxed as income at your marginal income tax rate(s).

The amount of income you can withdraw under a capped drawdown plan is based on the Government Actuary’s Department (GAD) tables which are based on age but do not take health into account.

For flexi access drawdown you can choose how much income you want to withdraw without reference to any rates or limits other than the size of your pension fund.

If you or your spouse is relatively young, a secured pension (lifetime annuity or scheme pension) could be less attractive due to the lower mortality factor and, in addition, there is a longer timescale to take advantage of the potential investment rewards and risks of Drawdown Pension.

Your beneficiaries can continue to take withdrawals from any remaining drawdown fund on your death (annuity purchase is also an option) or take the remaining fund as a lump sum. If you die before age 75, any income or lump sums taken by your beneficiaries will be tax-free.

It is worth noting that recent changes in legislation mean that from April 2027 any unused pension funds in drawdown will fall inside your estate and be included in Inheritance Tax calculations.