You can start your drawdown withdrawal through the Moneybox app or on our website. Further information on what drawdown is and what it means for your pension can be found here.
Taking money from your pension is an important decision, and withdrawals cannot usually be reversed. Before you continue, you may be asked to verify your age to access your pension. You’ll then be asked whether you’ve received financial advice, guidance from Pension Wise, or whether you’ve chosen to continue without either.
We’ll also ask you some questions about your circumstances and retirement plans. This helps us provide you with relevant information about the risks and implications of taking money from your pension.
You can then choose how you’d like to withdraw: take your tax-free cash only, take a mix of tax-free and taxable cash, or make a full withdrawal. You can usually take up to 25% of your pension tax-free, with any amount above this usually subject to Income Tax at your applicable rate.
If you enter drawdown, you’ll also need to decide how your new drawdown pension pot will be invested. You can choose to:
Keep your current investment allocation;
Select an Investment Pathway aligned with a retirement goal; or
Choose your own investment funds.
It’s important to consider whether you need financial advice or guidance before making these decisions.
Before submitting your pension withdrawal request, you will be given the chance to review your choices. Once confirmed, the withdrawal will be submitted and you will receive an email outlining your withdrawal request.
If you’re unsure about your options or whether drawdown may be the best option for you, we recommend seeking advice from an independent financial adviser. You can also get free impartial guidance from the Government-backed guidance service, Pension Wise.