Advantages and disadvantages of drawdown pensions

Pension drawdown


  • You will have control over your savings and how they are invested
  • You can manage your money with the aim of generating further growth or to beat the effects of inflation
  • You can make changes to the income you receive
  • You will be able to pass any remaining funds in your pension pot on to your next of kin


  • Pension drawdown income is not guaranteed and there is a risk that you may run out of money in retirement
  • If your investments perform poorly you may need to reduce the income you take
  • You will need to regularly review your investments to ensure you are still on track
  • If you plan to buy an annuity later in life, annuity rates may be lower than they are currently