Pension Drawdown is an alternative way of drawing your pension at your retirement age. You can still obtain your 25% tax free lump sum, and you are able to make withdrawals from your pension pot. However this is subject to many rules and regulations.
The Pension Drawdown regulations have now been revised in this year's Budget.
The most far reaching change has allowed more people to have access to their whole pension pot from April 2015. This means that many people may not have to purchase an annuity.
The comparison of Drawdown versus Annuity is a complex decision and you should always seek the advice of a regulated adviser. This will help ensure that you make the right choice and do not make a costly mistake.