Definition of income drawdown

Income drawdown (also known as Unsecured Pension) is the name given to the facility to continue to keep your retirement savings invested and take an income each year rather than buy an annuity. This facility can only be used from ages 50 (55 from April 2010) and 75, at which time an annuity has to be bought or the money transferred into an Alternatively Secured Pension.


The minimum income that can be taken from a drawdown arrangement each year is £0. The maximum income is 120 per cent of a pension calculated according to tables produced by the Government Actuary's Department (GAD). These tables are based on the amount your fund would buy as an annuity based on your life only and with no allowance for any future increase. The maximum income level is recalculated every 5 years. [1]



Retirement: Income drawdown

Drawdown investors pay £millions in excessive fees

Disaster for income drawdown pensioners



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