Pension Drawdown.

Our free Pension Drawdown Service helps you make confident, stress free decisions to stay in control of your retirement income.

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Moneyfarm image

Pension Drawdown.

Our free Pension Drawdown Service helps you make confident, stress free decisions to stay in control of your retirement income.

Get started

As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. It is important to consider your risk tolerance and investment objectives before proceeding. A pension may not be right for everyone. Tax treatment depends on your individual circumstances and may be subject to change in the future. If you are unsure if a pension is right for you, please seek financial advice. Read more.

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As with all investing, financial instruments involve inherent risks, including loss of capital, market fluctuations and liquidity risk. It is important to consider your risk tolerance and investment objectives before proceeding. A pension may not be right for everyone. Tax treatment depends on your individual circumstances and may be subject to change in the future. If you are unsure if a pension is right for you, please seek financial advice. Read more.

What is drawdown?

Pension Drawdown is a flexible option for accessing your pension in retirement. You can withdraw lump sums, generate a steady income or do both, as and when you choose.

You can typically withdraw up to 25% of your pension pot tax-free, whilst leaving the rest invested. This means your pension can continue to grow over time. As with all investments, there is a chance that your pension could fall in value.

Moneyfarm’s drawdown service allows you to access your pension anytime after the age of 55.

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Why choose Moneyfarm’s Pension Drawdown Service?

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Free drawdown and flexible withdrawal

Access your pension savings flexibly in retirement, with no additional fees.

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Hassle-free

Speak with our investment consultants for clear guidance. We handle everything—from withdrawals to tax payments.

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Tax efficient

Withdraw up to 25% of your pension tax-free and minimise tax liabilities

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Inheritance Tax benefits

Pass on pension funds to your beneficiaries free of inheritance tax

Free drawdown and flexible withdrawal

Access your pension savings flexibly in retirement, with no additional fees.

Hassle-free

Speak with our investment consultants for clear guidance. We handle everything—from withdrawals to tax payments.

Tax efficient

Withdraw up to 25% of your pension tax-free and minimise tax liabilities

Inheritance Tax benefits

Pass on pension funds to your beneficiaries free of inheritance tax

How does drawdown work?

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Combine old pensions

Open a Moneyfarm Pension, and invest a lump-sum, set up a direct debit or transfer your old pensions for free.

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Plan for retirement

Think about how much you’ll need in retirement, the amount you want to access and how frequently.

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Understand your options

Speak with an investment consultant who will explain your options and guide you through the process.

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Enjoy your retirement

Sit back and relax – Moneyfarm will handle the rest.

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Calculate your retirement income with Moneyfarm's Pension calculator.

About you


Your current situation

 
£
 
£
 

 

£
 
£
 

Your goal

 
£
 
Include state pension
 

Results:


Your pension

Retiring at 66 with your current monthly contribution of £200, your annual income will be £20,616 off your target.



Retirement income (annual):

Current:

£29,384

Target:

£50,000


Retirement pot:

Current:

£508,936

Target:

£1,095,646

Your contribution

By increasing your current monthly contribution and transferring your pension to Moneyfarm you'll be able to achieve your target retirement income.



Current monthly contribution of£200

A new monthly contribution of£427


Ideal monthly contribution of

£627

Your options

  • Lower your target income

  • Delay your retirement

Or, let Moneyfarm help you:


  • Open a pension plan of £427 to increase your contribution

  • Transfer your current pension to Moneyfarm and increase your contribution by £427

Reach your target with us
How we calculated these figures

The figures here take into account of inflation at 2% and show the buying power of your pension in today’s money. We use the tax year 2024/25 for the relevant figures. If you have any questions, contact our Investment Consultants on 0800 433 4574 or email hello@moneyfarm.com.

This calculator aims to give you an indication of how much you may need to contribute to a pension to achieve your desired retirement income. The calculator should not be regarded as personal advice, nor is this a reliable indicator of future performance. As with all investments, your capital is at risk and the value can fall and rise, therefore you may get back less than you invest. One consensus is that you should aim for two - thirds of your final salary to maintain your current standard of living when retired.

The State Pension age in the UK is currently 66 years old for both men and women, while the age in which you can access a Private Pension is 55 (Increasing to 67 and 57 respectively from 2028).

This calculation assumes that your investments will grow by an annualised 5% during the accumulation phase - before your desired retirement age. Once retired, your investments will grow by an annualised 3%. We assume a Fixed Allocation portfolio, with an estimated total fee of 0.62% - including the Moneyfarm fee, underlying fund fee and the spread. We assume you will receive the full state pension of £11,501 a year during retirement and that you will live to the age of 82.6 based on the latest dataset published by the Office of National Statistics (National life tables – life expectancy in the UK: 2020 to 2022).

The drawdown time period is assumed to be from the age you would like to retire to your life expectancy as per above.

Regular contributions are assumed to be personal contributions increased in line with inflation and include the tax relief associated with a basic rate taxpayer. If you are a higher or additional rate taxpayer you may be eligible for higher amounts of tax relief.

The figures here are a guide and are not guaranteed. Your final pension fund and the income available will depend on factors including the growth your fund achieves, contributions you make in the future, charges, inflation, your retirement age, annuity rates at the time and the annuity options you choose. Your personal contribution could be less, as you may benefit from additional government tax relief. Contributions above the £60,000 per year allowance, or your annual income, will not receive tax relief; unless you are using unused allowances from previous tax years that have been carried forward.

This calculator does not take account tax charges which may apply to withdrawals or to contributions that exceed your allowances. Prevailing tax rates and reliefs are dependent on your individual circumstances and are subject to change.

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The inheritance tax benefits of pension drawdown.

With Moneyfarm’s Pension, funds left in your pension wrapper can usually be passed on free of inheritance tax. Some consider this to be a key advantage of drawdown over most standard annuities.

With drawdown, your beneficiaries can keep the flexibility associated with your pension pot. This means they have the option to withdraw as a lump sum, remain in drawdown or purchase an annuity. The tax treatment of your assets will depend on when you pass away.

Under 75 years old – Beneficiaries will usually receive payments free of tax. They will have to claim within two years, after which they may be taxed.

Over 75 years old – Beneficiaries will receive payments as income and be taxed accordingly.

Set up a Private Pension.

Tax-efficient, globally diversified and actively managed portfolios to meet your goals – with an investment consultant on the phone.

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Frequently Asked Questions.