Pension Drawdown Rules: 25 Questions Answered

Answering your questions about pension drawdown rules

Over the past few years we have had some of the most wide-ranging pension reforms the UK has ever seen. The freedoms introduced put people firmly in control of when and how they take an income from their pension pot. But pension drawdown rules aren’t straightforward and confusion abounds. So, in an attempt to make things clearer, here’s an answer to the 25 most popular questions we get asked.


1. Who can drawdown from their pension?

2. Can I still take a tax-free lump sum?

3. What types of pension can I drawdown from?

4. What is a crystallisation event?

5. Will drawdown make me run out of money?

6. What happens to the money that I’ve not accessed yet?

7. How often can I withdraw money?

8. Is there a limit to how much I can drawdown in any year?

9. Do I have to take drawdown?

10. Can I choose where to keep any balances invested?

11. What things do I need to consider before entering drawdown?

12. How much does it cost to open a pension drawdown account?

13. Do I still have to pay fund management fees?

14. Why would I crystallise only part of my fund?

15. How does tax work on money that I drawdown?

16. What happens to any money that is still in my pension when I die?

17. Can I move a pension in drawdown to another provider?

18. Is Capped Drawdown still relevant?

19. Can I take drawdown from my defined benefit scheme?

20. What happens if I was in drawdown before the new rules came in?

21. Can I still save into my pension once I’m in drawdown?

22. How do I open a drawdown plan?

23. Is the age at which I can enter drawdown going to change?

24. Do I have to seek advice before entering drawdown?

25. Can I have multiple drawdown plans?

It is important that no actions should be taken without advice, and the risk warning should be taken notice in all cases. Personal circumstances and risk profile mean that the advice for one person which may not be the same for everyone.

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About the Author

By Nigel Reeves: My mission is to provide the quality, honest & jargon-free pension advice that people need to secure the retirement they deserve. At home, I'm a family man and an active supporter of grassroots sports!

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