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Investing your drawdown (flexible income) savings

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Balancing growth and flexibility in retirement

It’s important to understand and explore all the investment options available to you at each stage of your retirement journey. This section of the website has been designed to help you decide how to invest your drawdown savings if you have a Pension Choices Plan (PCP) and you are: 

  • moving from your PCP personal pension into your PCP drawdown for the first time
  • adding new money to your PCP drawdown (transfer-in or top-up)
  • planning to change where your PCP drawdown savings are invested (switching funds), or
  • taking money from your PCP drawdown.

This information will assist you in making informed decisions and is especially important if you are not looking to take advice from a financial adviser about how your drawdown savings are invested.

What investment options do I have?

You can choose from the following options:
 

Investment Pathways
  • If you don’t want to select your own funds, you can tell us how you plan to use your drawdown savings, and we’ll invest in funds aligned to that objective.  
 
Self-select your own funds
  • If you prefer to choose your own funds, you can select from the options available.
 
Remain invested in your existing funds
  • If you don’t want to make any changes when moving into drawdown, you can keep your current investments exactly as they are.

 

Please note, you can change your investment choices in the future. We don’t currently charge for this, but if that changes we’ll let you know.

Read more about each of these options

  • Investment Pathways are designed to help you choose an investment option that matches your goals - without needing financial advice or picking individual funds. 
  • If you select Investment Pathways, you’ll choose one of four options based on how you plan to use your drawdown savings over the next five years. Each pathway leads to a tailored investment solution that fits your needs.  
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Pathway 1

I have no plans to touch my money in the next five years.

 

Investments that aim to offer the potential for the best possible long-term growth, with a medium level of risk.

Pathway 1
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Pathway 2

I plan to use my money to set up a guaranteed income (annuity) within the next five years.

 

Investments that aim to protect the level of income you can get when you come to buy your annuity, for a medium level of risk.

Pathway 2
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Pathway 3

I plan to start taking my money as a long-term income within the next five years. (This includes taking money as and when you need it over the longer term.)

 

Investments that aim to offer the potential for some long-term growth, with a medium level of risk.

Pathway 3
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Pathway 4

I plan to take out all my money within the next five years.

 

Low risk investments that aim to keep pace with inflation.

Pathway 4

Self-select from any of the other funds available to you

For details of the full range of funds available to you, please see the Pension Choices Plan fund guide. This provides information about each fund to help you make your fund choices, such as the level of risk associated with each fund, fund charges and other costs.

You don’t have to make any changes to your existing funds when you move into drawdown.

If you’re unsure which funds you’re currently invested in, please check your Annual Benefit Statement or contact us.

Review your drawdown savings regularly

Make sure your drawdown savings and the investment choices you’ve made still meet your needs — especially if your financial circumstances or retirement goals have changed, or if a large proportion of your money is held in cash or cash‑like investments.
 

Check the Pension Choices Plan Fund Guide for the full list of investment options.

It gives clear information on each fund – including risk levels, charges and other costs – so you can compare your choices and decide what’s right for you.

Things to consider

What if my circumstances change?
  • Your choice isn’t permanent. You can switch between Investment Pathways or move money between funds anytime – and we don’t currently charge for this. If this changes, we’ll let you know.
Be sure to shop around
  • Our drawdown options might not be the best fit for you. It’s worth comparing what you can get from other providers as you might be able to get a better deal.

  • If you’re 50 or over, we strongly encourage you to use Pension Wise. It’s a free, impartial service by the government-backed MoneyHelper service that offers guidance on all the options available for your pension savings. You can have a free consultation online, over the phone or face-to-face. To book a free appointment call 0800 280 8880 or visit moneyhelper.org.uk/pensionwise

Need expert financial advice?

If you don't already have an adviser, it takes just three minutes to book a no obligation, initial chat with M&G Advice. It’s a great way to explore how we could help.

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