Pension drawdown (flexi-access drawdown) allows you to keep your pension pot invested and withdraw income flexibly from age 57. The first 25% of the pot can be taken as tax-free cash (up to the Lump Sum Allowance of £268,275). Remaining withdrawals are taxed as income at your marginal rate. Once you take flexible income, the Money Purchase Annual Allowance drops to £10,000. All drawdown providers must be FCA-authorised (FCA, HMRC, Money and Pensions Service, 2026). |
UK Pension Drawdown Explained: Flexi-Access, UFPLS, Tax and BeneficiariesPension drawdown UK 2026: how flexi-access drawdown works, the 25 per cent tax-free lump sum, tax bands on withdrawals, MPAA rules and the lifetime... 
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