Income Drawdown (or 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.

The income that can be taken from a drawdown arrangement can be varied each year between a minimum and a maximum. The minimum is £0 and the maximum is 100% of a pension calculated according to tables produced by the Government Actuaries Department. 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 income limits for drawdown pension funds have to be reviewed at least every three years (yearly if the member is over age 75) from the date the member first designated funds to be used for drawdown.

The value of the investment can go down as well as up and you may not get back as much as you put in.