Pension Drawdown Advice
Keeping your pension invested in retirement requires a plan — one that balances income, growth, and longevity.
Your Situation
If you are approaching retirement and want to keep your pension invested rather than buying an annuity…
Pension drawdown gives you the flexibility to take income from your pension while keeping the remainder invested. Introduced following the 2015 pension freedoms, it has become the most popular retirement income option for those with personal and workplace pensions. But flexibility comes with responsibility — and decisions about how much to withdraw, how to invest the residual pot, and how to manage longevity risk need careful, ongoing thought.
Castle Stonebridge provides drawdown advice to clients across the UK who want the benefits of pension flexibility without the risks that come from navigating it without professional support. We help you establish a sustainable withdrawal rate, construct a retirement investment portfolio appropriate for your risk tolerance, and keep your income plan on track through annual reviews.
Questions We Answer
"How much can I safely withdraw from my pension each year without running out?"
Sustainable withdrawal rates depend on your pot size, investment returns, and how long you need the money to last.
"What happens to my drawdown pot if markets fall sharply early in retirement?"
Sequence of returns risk is the biggest threat to drawdown plans — a market fall in the first few years of retirement has a disproportionate impact.
"Should I take a regular income or ad hoc withdrawals from drawdown?"
The structure of your withdrawals affects your tax position, your investment strategy, and the sustainability of your income.
"Should I take my 25% tax-free cash all at once or in phases using UFPLS?"
The timing and method of taking tax-free cash has significant income tax implications that need planning in advance.
"At what point should I consider converting some of my drawdown to an annuity?"
Blending drawdown with an annuity at a later age can reduce longevity risk — but requires careful timing and product selection.
Our Approach
How We Guide You
Retirement income modelling
We model your income needs, expected pot longevity under different withdrawal rates, and the impact of market scenarios on your plan.
Drawdown investment strategy
We construct a retirement portfolio appropriate for your risk tolerance, time horizon, and income needs — typically using a bucket or liability-matching approach.
Tax-efficient withdrawal planning
We structure your withdrawals to minimise income tax, maximise use of the personal allowance, and optimise the sequence and method of taking tax-free cash.
Annual drawdown review
We review your drawdown plan each year, adjusting withdrawal rates and investment strategy in response to market performance and changes in your circumstances.
Key Considerations
What you should know before making a decision
- Pension drawdown carries longevity risk — if you live longer than expected or withdraw too much too early, your pension pot could be depleted before you die.
- Sequence of returns risk means that poor investment performance in the early years of drawdown has a disproportionately negative impact on long-term pot sustainability.
- The value of your drawdown pension pot may fall as well as rise. There is no guarantee that your income will be maintained, and you may receive less than you invested.
- Taking more than 25% of your pension tax-free is not possible — withdrawals above this level are taxed as income at your marginal rate. Tax treatment depends on individual circumstances and current legislation.
Talk to an independent adviser — no obligation
Castle Stonebridge is FCA-regulated and wholly independent. We are not tied to any provider, which means our advice is guided solely by what is right for you.
Book a Free ConsultationYour initial consultation is completely free and carries no obligation.
Common Questions
Frequently Asked Questions
Related Advice Areas
Ready to get the right advice for your situation?
Your free initial consultation is completely without obligation. We will listen, understand your specific circumstances, and tell you honestly whether and how we can help — before we discuss fees.
advice@castlestonebridge.co.ukCastle Stonebridge Limited is an Appointed Representative of Rosemount Financial Solutions (IFA) Limited, which is authorised and regulated by the Financial Conduct Authority. Rosemount Financial Solutions (IFA) Limited is entered on the Financial Services Register under reference 535515. Tax treatment depends on individual circumstances and may change.
Investment & Pensions Risk: Capital is at risk. The value of pensions and investments and the income they produce can fall as well as rise. You may get back less than you invested. Past performance is not a reliable indicator of future results.