Income drawdown allows retirees to withdraw money from their pension pot as needed, rather than purchasing an annuity. This method provides flexibility by:
- Control over withdrawals: You can decide how much and when to withdraw funds, allowing you to manage your income based on your needs.
- Investment growth: The remaining pension pot stays invested, potentially growing and providing more income over time. The funds could fall in value however, possibly reducing the sustainable income or leading to the funds being depleted.
- Adapting to changes: You can adjust withdrawals based on changes in your financial situation, health, or lifestyle.