However, even if your provider offers flexi-access drawdown, you may want to consider taking independent pension advice first. If that is the case you can still transfer your pot to a flexible scheme.
Research by Profile Pensions shows 90pc of plans do not allow customers flexible access to their cash from 55**.
If you’re considering this option, the first thing you need to check is whether your provider offers flexible access. You are eligible for pension drawdown if you are aged 55* or over and belong to a defined contribution scheme or plan – one that you will have paid into and to which your employer might also have contributed – or have a personal pension such as a Sipp (self-invested personal pension). Ongoing management of your pension is important to make sure it matches your attitudes to risk and personal circumstances. But a flexible drawdown pension is not risk-free and if your investments perform badly, the value of your income and your pension fund could go down. If the underlying investments do well, both your pension fund and your retirement income can increase. This means the income you receive will depend on the performance of your funds. With a drawdown pension, your savings stay invested. It is also called income drawdown, and it is an alternative to buying an annuity, which would guarantee you a set income for life but also mean that your money is no longer invested. This will provide you with an income that can be paid regularly or as an annual lump sum. Pension drawdown is a flexible way to access your money at retirement, allowing you to withdraw some of the money from your pension pot while keeping the rest invested. It will answer important questions about new rules, charges and pension drawdown tax implications. This guide will explain what pension drawdown is, how it works and whether it can help you to maintain a pension pot that will meet your retirement needs. If you are looking for a flexible retirement option, you may be considering a drawdown pension. If you are thinking of retiring but don’t want to take all your money in one go, pension drawdown may be the ideal solution