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What is pension drawdown?
A pension drawdown, or flexi-access drawdown (FAD), allows you to access some of your pension pot as a lump sum (up to 25% tax-free), while leaving the remainder invested. You can then take an income from what remains.
It's an alternative to buying an annuity and can free up some cash, with the potential for your pension pot to continue growing via your chosen investments.
Please remember, the value of investments can go down as well as up and you may get back less than you invest.
Tax treatment depends on your individual circumstances and may be subject to change in future.
Speak to an expert before choosing drawdown
If you have a personal pension plan with Wesleyan and there’s more than £30,000 in the pot, flexi-access drawdown may be an option you wish to explore. You would need to speak to your Specialist Financial Adviser first, to ensure it was the right choice for you.
Drawdown options can be confusing, so even if your pension is held elsewhere, it’s important to speak to a pensions expert before making a final decision. A Specialist Financial Adviser will be able to give you the guidance you need when it comes to the pension choices available to you. Advice charges may apply.
Why choose us for pension advice?
Pension advice tailored to your financial goals
Whether discussing pension drawdown or the other pension options available, your Specialist Financial Adviser will provide personalised advice suited to your needs.
Experts in advising on pensions, they will assess your financial situation, alongside your retirement goals, and provide solutions to help you get the best from your retirement. If pension drawdown is the right choice for you, they will also offer advice on investing in funds, as well as undertaking regular reviews, if you wish, to help keep the remainder of your pot growing.
The value of your pension pot can go up and down and its value, when you take benefits, might be less than you paid in.
Helping plan for your retirement today
Following a full review of your finances, your Specialist Financial Adviser can advise you on all aspects of your pension and help prepare you for your life in retirement. They will draw up a plan that includes:
- An overview of the income you'll need at each stage of retirement to achieve your goals
- Ways to address any shortfalls in retirement income
- The benefits you'll be entitled to and when
- Savings and investment opportunities that could help increase retirement income
To find out more about the pension options that may be available to you, read our guide to pension options at retirement.
Whether discussing pension drawdown or the other pension options available, your Specialist Financial Adviser will provide personalised advice suited to your needs.
Experts in advising on pensions, they will assess your financial situation, alongside your retirement goals, and provide solutions to help you get the best from your retirement. If pension drawdown is the right choice for you, they will also offer advice on investing in funds, as well as undertaking regular reviews, if you wish, to help keep the remainder of your pot growing.
The value of your pension pot can go up and down and its value, when you take benefits, might be less than you paid in.
Following a full review of your finances, your Specialist Financial Adviser can advise you on all aspects of your pension and help prepare you for your life in retirement. They will draw up a plan that includes:
- An overview of the income you'll need at each stage of retirement to achieve your goals
- Ways to address any shortfalls in retirement income
- The benefits you'll be entitled to and when
- Savings and investment opportunities that could help increase retirement income
To find out more about the pension options that may be available to you, read our guide to pension options at retirement.
What customers say about Wesleyan Financial Services…
94% of customers rate their Specialist Financial Adviser as very good or excellent
94% of customers agree that Wesleyan Financial Services makes them feel valued as a customer
94% of customers agree their Specialist Financial Adviser demonstrates knowledge of their profession
This data is from the 2024 Wesleyan Customer Experience Survey
Is pension drawdown right for you?
If you are looking to subsidise a phased retirement, boost your income while continuing to work, or take a lump sum of tax-free cash when you retire, pension drawdown may be something you’d consider. To be eligible you must:
- Be aged 55 or over (rising to 57 in 2028)
- Have a defined contribution pension*
- Be with (or transfer to) a provider who offers flexi-access drawdown as an option
It is worth remembering that by taking a lump sum you will be reducing the amount in your pension pot. As there's no guarantee the remainder invested will perform well enough to cover you through retirement, it's important to seek advice before making any decision.
* Although defined benefit pensions, the NHS and Teachers’ pension schemes both offer a flexibility similar in some ways to drawdown.
Some of our testimonials
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Exceeded expectations
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Pension planning advice
Frequently asked questions about appointments
Your adviser will explain any charges as part of an initial conversation. This conversation is at no charge and allows you to agree the areas in which you would like our help and advice.
You will only be charged once you have agreed the services you wish to receive from us, and the associated costs.
To make the most of your time with your Specialist Financial Adviser, it can be handy to gather any information or documents relating to your finances. This can help to give your Specialist Financial Adviser an understanding of your assets and liabilities.
You may also be asked to complete a Financial Outline. This enables your Adviser to tailor your appointment to you, your circumstances and your future goals. If you don't complete it beforehand, you’ll need to do so as part of your appointment.
An initial meeting with a Specialist Financial Adviser will typically last around one hour, though it does depend on the complexity of your circumstances. Often the Specialist Financial Adviser may arrange a second meeting with you to present any recommendations.