Skip Header

Pension drawdown

Important information - The value of investments can go down as well as up, so you may get back less than you invest. The value of tax savings and eligibility to invest in a SIPP or Junior SIPP depends on personal circumstances and all tax rules may change in the future. You cannot normally access money in a SIPP until age 55.

Pension drawdown at a glance

At Fidelity, we offer free drawdown access to your pension savings, because we never forget whose money it actually is. And because it’s hard to know what you’ll be doing in the future, we give you the flexibility to take the level of income you want – and change it when you need to.


Drawdown guide

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.

Call our retirement specialists

Our retirement specialists can help you understand drawdown and offer guidance or personalised advice. We're open 9am to 5pm, Monday to Friday.

Pension Wise

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.


Drawdown with our SIPP

If you want to go into drawdown then you can choose to do it with our SIPP (self-invested personal pension). We offer free drawdown access to your pension savings, because we never forget whose money it actually is. 

  • You can take up to a quarter (25%) as a tax-free lump sum straight away or in stages.
  • You can choose how much to take and how often.
  • You can choose where to invest your pension pot savings.
  • All you pay are your fund managers’ ongoing charges and our low-cost service fee. There are no set up, one-off withdrawal or annual drawdown fees. Other charges may apply.
  • You'll also receive support from our retirement specialists.

If your pension pot is not already in the Fidelity SIPP, you will need to transfer it to us before you access income drawdown. If you have already started taking drawdown from your pension pot you can still transfer it.

Get your pension drawdown guide

Important information - It’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what you should consider before transferring, please read our SIPP transfer factsheet. If you are in any doubt if a pension transfer is suitable for your circumstances we strongly suggest that you seek advice from an authorised financial adviser.

Things to consider with pension drawdown

When you are planning your retirement and thinking about drawdown, you need to consider how you will make your pension savings last. We have tools which can help guide you including our retirement planning calculators. After all, people are living longer and you could spend 20 years or more in retirement.

There are a number of factors that will influence how long your money will last:

  • the amount you have in your pension pot and other investments at retirement
  • the amount you take out of your pension pot
  • the way you invest your money

You can aim to provide an income, to grow the capital in your pension pot, or for a combination of the two.

One of the big decisions about drawdown income is how you produce it. There are three main options:

Natural income only

You can take the dividends that are paid to the fund, instead of cashing in units or shares.

Capital withdrawals only

You can put your money in investments that aim to deliver capital growth instead of income, and then withdraw the growth amount as income.

Capital withdrawals plus natural income

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.

Get some expert help

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 is able to provide both guidance and advice on your retirement options. The service we offer is based purely on helping you find the most appropriate solution for your personal circumstances.

You can call us on 0800 368 6882. We're open 9am to 5pm, Monday to Friday.

Fidelity's retirement service

How does pension drawdown work?

If you've ever wondered what pension drawdown means, our video will explain. Whether you want to know what the advantages of pension drawdown are, what your options are, or if any of the above is tax-free - in just a couple of minutes, you'll have a much better idea as to what pension drawdown is all about. 

Transcript - How does pension drawdown work?

Pension drawdown FAQs

How does pension drawdown work?
How do I apply for drawdown?
When can I access my pension?
How long will pension drawdown last?
How much income could I take from my pension?

Pension Wise

The Government offers a free and impartial guidance service to help you understand your options at retirement. This is available via the web, telephone or face-to-face through government approved organisations, such as The Pensions Advisory Service and the Citizens Advice Bureau. You can find out more by going to or by calling Pension Wise on 0800 138 3944.

Important information - Remember that 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 368 6882 or refer to an authorised financial adviser.