It’s hard to know what you’ll be doing in the future, so picking a retirement income to last a decade or two (and, hopefully, even longer) isn’t easy. Pension drawdown gives you the flexibility to take whatever income you want – and change it when you need to.
Our guide has everything you need to help you weigh up the advantages and drawbacks of drawdown. It also outlines what support we offer - everything from guidance to personalised financial advice.
Our retirement specialists can help you understand drawdown and also offer guidance or personalised advice. Call us on 0800 368 6882. We're open 9am to 5pm, Monday to Friday.
The government's Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online or over the telephone on 0800 138 3944.
When you are planning your retirement and thinking about drawdown, you need to consider how you will make your pension last. After all, people are living longer and you could spend two to three decades in retirement.
There are a number of factors that will influence how long your money will last:
These factors will influence how you choose to invest and drawdown your pension. You can aim to provide an income, to grow the capital in your pension, or a combination of both.
One of the big decisions about drawdown income is how you produce it. There are three main options:
You can take income from the dividends that are paid to the fund, instead of cashing in units or shares. There’s more chance of your money lasting, but you won’t know exactly how much you’ll get from month to month.
You can put your money in investments that aim to deliver capital growth instead of income, and then withdraw money from the capital.
You can make withdrawals that include the natural income from your investments plus some of your pension pot to get the income you need.
Whichever method you use to take an income, it’s important you plan carefully so you don’t run out of money. You need to think about the different types of fund choices that will support the way you drawdown your pension.
Learn how Fidelity customer Oliver is taking full advantage of his pension freedoms
If you want to go into drawdown then you can choose to do it with the Fidelity SIPP (Self-Invested Personal Pension).
If you choose Fidelity for your pension drawdown then you’ll need to transfer your existing pensions to our SIPP.
There are big decisions to make when you opt for drawdown, which is why we find many investors – even some of the most experienced ones – like to get some help.
Decisions about drawdown may seem complicated, but it’s important to get them right as they will affect your future income.
Fidelity's retirement service has retirement specialists who are able to provide both guidance and advice about your retirement needs. The service we offer is based purely on helping you find the most appropriate solution for your personal circumstances. Call us on 0800 368 6882
The government's Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online at www.pensionwise.gov.uk or over the telephone on 0800 138 3944.
The value of investments and the income from them can go down as well as up so you may get back less than you invest. This information is not a personal recommendation for any particular product, service or course of action. Pension and retirement planning can be complex, so if you are unsure about the suitability of a pension investment, retirement service or any action you need to take, please contact Fidelity’s Retirement Service on 0800 084 5045 or refer to an authorised financial adviser. Eligibility to invest into a SIPP or Junior SIPP and tax treatment depends on personal circumstances and all tax rules may change in future. Pension money cannot usually be withdrawn until age 55.