SIPP - Income drawdown

Income Drawdown

The SIPP gives you flexibility to decide how and when (from age 55, 57 from 2028) you want to start drawing your retirement benefits. When considering your options you should first consider whether you need the security of income provided by an annuity. If this is not your main priority, then you could consider Income Drawdown.

With income drawdown you can:

  • Take a tax-free lump sum at retirement.
  • Choose the level of income you want to take from your pension.
  • Continue to keep your pension fund invested during retirement.
  • Take a combination of tax-free cash and income as a one-off payment.
Receiving Advice on Your Retirement Options

Prior to making any decision about your retirement options we recommend that you seek guidance from Pension Wise or advice from a suitably qualified financial adviser.

If you are considering taking Income Drawdown rather than purchasing an annuity at retirement it is important that you understand the benefits and risks of Income Drawdown.

You need to consider the investment returns that you may be able to achieve and the level of income that you wish to take.

How can Pension Wise help?

Everyone with a Defined Contribution pension scheme is entitled to access free, impartial guidance on their pension options, including a face-to-face or telephone appointment, provided by Pension Wise, a guidance service backed by Government.

visit pension wise

Open your SIPP today and get a free 12 month subscription to Money Observer

If you choose to open a new SIPP we’ll give you a free 12 month subscription to Money Observer (worth £69.00) to say thank you.

Each month you will receive:
  • A round-up of all the latest investment and market news
  • Expert views on which shares, funds, regions and strategies are expected to deliver top returns
  • Regular free supplements on the best funds, trusts and investment themes to follow
  • A unique databank of all funds and investment trusts, plus key investment ratios
  • Reports on Money Observer's highly successful model portfolios
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Who provides the SIPP?

Our SIPP provider, BW SIPP LLP, has administered SIPPs since 1999. Its employees are committed to providing excellent service using a breadth of administrative skills, supported by the latest technology.

Ratings specialist AKG, an independent actuarial consultancy, rate their overall financial strength as “Strong”. They have twice undergone the rigorous Investor in Customers assessment and twice been rated “Outstanding”. BW SIPP LLP is wholly owned by Barnett Waddingham.

Barnett Waddingham was founded in 1989, and has grown to become the UK’s largest independent provider of actuarial, administration and consultancy services. From small beginnings with just 20 people, it now boasts a total headcount of over 850 (including 64 partners and 97 associates) – with offices in seven locations around the UK.

Get started today

You can apply online and setup your new SIPP

open a SIPP today
The investments made within the SIPP can fall as well as rise and you may end up with a fund at retirement that's worth less than you invested.

Like all pensions, the treatment of tax depends on individual circumstances and may change in the future, and you need the necessary experience and knowledge to understand the product features explained in the Key Features Document which you'll see when applying. You’ll also need to understand the pension projections and effects of charges set out in the Key Features Illustration.

The ii SIPP is best suited to investors who have sufficient knowledge and experience to make their own investment decisions. It does not include assets that are not available via the stock market, such as direct investment in commercial property. We do not provide investment or tax advice so if you’re not sure whether a SIPP is right for you, we recommend you seek independent advice from a qualified adviser.