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Income drawdown

Which funds can you invest in?

Aviva's income drawdown option offers you a wide and varied choice of funds in which to continue investing your pension fund. You'll need to select the funds that match your plans for retirement and your attitude to risk and return. You also have the freedom to switch funds and start paying into new ones to suit your personal circumstances.

Your choice of investment funds

The different types of funds you can invest in include:

  • Cash/Money Market
  • Mixed Asset
  • Corporate Bonds
  • UK Gilts
  • High Yield Bonds
  • Global Bonds
  • Property
  • Stocks and shares
  • Specialist

As well as choosing a fund or funds that invest in either a single asset or mix of assets, you can choose funds with different investment management styles. For example, you could invest part of your pension plan in funds that concentrate on companies of a specific size or economic sector.

Or, you could invest in socially responsible funds, which actively invest in companies providing solutions to social and environmental problems. And, of course, our fund managers aim to achieve great performance too.

Bear in mind that with any stock market investment, the value of your investment can go down as well as up and is not guaranteed and your pension fund may be worth less than has been paid in. With property-based investments, the fund value is based on a valuer's opinion rather than fact.

If property sells for less than valued, the fund value will be reduced. Also, buying and selling properties can take quite a while, so if market conditions are exceptionally poor, there could be a delay of up to six months if you want to switch your money out of a property fund or transfer your fund to another provider.

You access income drawdown through our Pension Portfolio which also allows you to invest in other assets directly, including stocks and shares and commercial property.

Free fund switches

We recognise that things change over time and you might want to alter the funds in which you invest if your personal circumstances or attitude to risk/return change. Income drawdown from Aviva gives you the flexibility to do this - and there's absolutely no charge.

The risks associated with different investments

The fund(s) that are most suitable for you will depend on what you have planned for your retirement and your attitude to risk/return. Risk is one of the most important factors when it comes to investing your money for the future. The key is to find the right balance between the amount of risk you're willing to take and the potential return you're likely to get over your investment period.

If you have a long time to go before you intend taking an income, you might be prepared to take a greater risk for the potential of a greater return. As you get closer to the time when you require an income, you'll probably want to limit the amount of risk you take, even though your potential return may be less. With the help of your financial adviser, careful investment planning can help you to manage your risk/return effectively.

So what is meant by risk?

All investments carry the risk that their value could drop below the value of the money you originally invest. This risk can be measured by the 'volatility' of the investment, or the amount of 'ups and downs' in its value. Typically, the more the value of an investment fluctuates, the higher the potential may be for gains or losses - often referred to as its risk/return, so understanding your attitude to risk/return is important.

How to apply

Find out more about how to apply for income drawdown from Aviva. The first step is to talk it through with your financial adviser to make sure it's the right option for you. If you don't have an adviser, you can find one in your area at

WC03042 10/2014