Drawdown pension

Resource type: Glossary item

Status: Maintained

Jurisdiction: United Kingdom

Introduced by the Finance Act 2011 from 6 April 2011, drawdown pension is an alternative way of taking benefits available for a member of a registered pension scheme (www.practicallaw.com/5-201-6474) that is a money purchase scheme (www.practicallaw.com/0-107-6857) or a money purchase section in a defined benefit scheme (www.practicallaw.com/0-107-7545). Provided he has reached normal minimum pension age (www.practicallaw.com/5-204-0445), the member may use income withdrawal (www.practicallaw.com/3-207-2098) or buy a short-term annuity (www.practicallaw.com/3-380-6447). If he satisfies a statutory minimum income requirement, the member will be able to take advantage of flexible drawdown (www.practicallaw.com/4-507-1108). Otherwise, he will be subject to capped drawdown (www.practicallaw.com/2-507-1114).

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  • Resource ID: 7-507-1079
  • Products:  Competition, IP&IT, PLC Arbitration, PLC Cross-border, PLC EU, PLC Glossary, PLC UK Commercial, PLC UK Competition Law, PLC UK Construction, PLC UK Corporate, PLC UK Dispute Resolution, PLC UK Employment, PLC UK Environment, PLC UK Finance, PLC UK Pensions, PLC UK Private Client, PLC UK Property, PLC UK Public Sector, PLC UK Restructuring and Insolvency, PLC UK Share Schemes & Incentives, PLC UK Tax
  • This resource is maintained, meaning that we monitor developments on a regular basis and update it as soon as possible.
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Practice note: overview
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Glossary
  • BCE 1 BCE 1 (http://crossborder.practicallaw.com/topic0-380-7453)
  • BCE 5B BCE 5B (http://crossborder.practicallaw.com/topic8-507-1804)
  • Capped drawdown Capped drawdown (http://crossborder.practicallaw.com/topic2-507-1114)
  • Defined benefit (DB) pension scheme Defined benefit (DB) pension scheme (http://crossborder.practicallaw.com/topic0-107-7545)
  • Flexible drawdown Flexible drawdown (http://crossborder.practicallaw.com/topic4-507-1108)
  • Income withdrawal Income withdrawal (http://crossborder.practicallaw.com/topic3-207-2098)
  • Money purchase scheme Money purchase scheme (http://crossborder.practicallaw.com/topic0-107-6857)
  • Normal minimum pension age Normal minimum pension age (http://crossborder.practicallaw.com/topic5-204-0445)
  • Registered pension scheme Registered pension scheme (http://crossborder.practicallaw.com/topic5-201-6474)
  • Short-term annuity Short-term annuity (http://crossborder.practicallaw.com/topic3-380-6447)
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