However, income drawdown is really only suitable if you're happy to leave your pension fund invested in the stock market so that it has a reasonable chance of growing. This makes income drawdown a high risk choice because the stock market can go up or down. You could end up with far less income than you've planned for.

Is draw down a good idea?

Generally, income drawdown is better than an annuity when it comes to tax-efficiency. This might be valuable to you if your income is derived from multiple sources (e.g. other pensions, savings, non-pension investments or buy-to-let properties etc.).

Is drawdown better than an annuity?

Pension drawdown is widely considered to be more flexible than an annuity, but it can carry greater risk. With pension drawdown you can move your money into one or more funds and adjust the amount and frequency of your withdrawals.