Understand the level of risk first
The money you move into Drawdown remains invested and can go down as well as up in value. How long your money lasts will depend on the how your investments perform, the amount of income you take and charges. It is important that you regularly review your level of income as it is not guaranteed to last a lifetime.
Pension tax benefits are based on personal circumstances and are subject to change.
Before you apply
A few things you should consider before opening an account.
Don't forget to shop around
Remember to compare our offering with other providers’ products. Think about everything from fund charges to investment options to make sure you’re choosing the right option.
Pension Wise from MoneyHelper is a free, impartial, government-backed service. If you're 50 or over and you want to understand your retirement options, you should use this service first. Visit MoneyHelper or call 0800 138 3944 for details.
Review how your pension stays invested
The investments you've used to grow your savings might not be suitable for taking an income. So it's important to ensure you're invested in suitable funds as you start to take drawdown. If you're not sure where the best place is to invest your money, or you want some help choosing funds, Investment Pathways is an initiative to help you choose how to invest. We take you through our Investment Pathway options later in this process.
You also have access to a wide range of investments to suit your risk level.
Learn more about understanding investment risk and think about the level of risk and loss you will be comfortable with. Regularly review the funds you’ve selected to ensure they still meet your needs.
Things to think about with pension drawdown
Ready to apply? First make sure you understand the ins and outs of drawing income from your pension.
Taking your tax-free cash
- You normally need to be at least 55 years old (rising to 57 from April 2028) to start taking any money from your pension.
- You can normally withdraw up to 25% of your pension pot as a tax-free lump sum. This can be taken in one go or in smaller portions over several years, although this will mean there's less money to provide an income in the future.
- We'll need your bank account details before any money can be paid out. You can add your bank details to the pension policy in MyAviva.
Taking a taxable income
- The remaining 75% of your pension pot will provide you with a drawdown income. This will be subject to income tax based on your personal circumstances.
- As soon as you take taxable drawdown money from your pension, the Money Purchase Annual Allowance (MPAA) limits how much you and/or your employer or another person can contribute to all your money purchase pensions, including this one, without paying a tax charge. The current MPAA limit for 2025/26 is £10,000.
- You can set up regular withdrawals of drawdown income. If you do this, your investments will be sold automatically, and the money moved to your cash account. You can change how often and how much you want to withdraw.
Managing your drawdown
- The value of your investments can go down as well as up. It's important that you regularly review your level of income as it is not guaranteed to last a lifetime.
- You need to consider risk. Poor market performance can reduce your investments. You might outlive your pension savings. Taking out too much money too soon can deplete your investments. Inflation can also erode the purchasing power of your withdrawals.
- Our annual Aviva SIPP fee of 0.35% is charged for drawdown including any fund management charges.
Important documents
Before applying for a SIPP with us, please amake sure you've read the key features, plus terms and conditions of an Aviva Pension. You should also understand our services and costs and target market statement.
We have key information you should check about using exchange-traded funds (ETFs), along with our order execution policy for trading, plus our conflicts of interest policy. You can see how we use your data in our fair processing notice.
Invest your way with Aviva
From absolute beginner all the way to a seasoned investor, we have a wide range of investment options.
Funds
Funds - Universal Retirement Fund - our simplest way to invest in your pension, it changes your investments based on your chosen retirement date.
- Ready-made funds – ideal if you want an easy option, these fully-managed funds have four different choices to match your risk appetite and goals.
- Experts’ Shortlist – a selection of 80 funds that experts at Aviva Investors think have the greatest chance of good income or capital growth over the long-term.
- Self-select funds –if you're an experienced investor, confident you understand risk and happy to take control, then you can buy and sell from our full list of over 5,000 funds.
Shares
Shares - Shares - buy and sell shares in UK companies you’re interested in.
- Exchange-traded funds (ETFs) - like investment funds, these are groups of assets bundled together, but they can be bought and sold like shares.
- Investment trusts - this is a type of fund that sells shares to invest in a portfolio of assets, with the aim of producing returns.
Our investment charges
Open or transfer
We don't charge you to open a SIPP with us, or to transfer your pensions to Aviva for Income Drawdown.
0.35% annual fee
The Aviva Charge for managing your investments is 0.35% of their value, up to £500,000. So, if you have £100,000 invested with us, you'll pay £350 a year.
Other charges
Depending on the investments you choose, you may have other charges, like fund management charges. You can find full details of possible charges here.
Learn about using your pension
We have a range of useful guides and calculators that can help you make the most of your pension money in retirement.
Using your pension
Withdrawing some of your pension
Understand the impact of taking part of your pension.
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Using your pension
Leaving your money where it is for now
We explain the ins and outs of delaying taking your pension.
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Using your pension
Mix and match your retirement options
How to take your pension in a way that suits you.
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Using your pension
Taking all your pension in cash
What to look out for if you decide to cash in your pension.
Pension calculator
See what you’ll need to save for the retirement you want.
Investment calculator
Work out what your pension investments could be worth.
Pension tax calculator
Understand the tax you’ll pay when taking your penison.
Applying for drawdown FAQs
Could income drawdown affect my tax position?
Yes. While the first 25% of your pension pot is usually tax-free, any further withdrawals are taxed as income at your marginal rate. This could push you into a higher tax bracket, particularly if you take large sums in a single tax year. It may also trigger the Money Purchase Annual Allowance (MPAA), limiting future pension contributions to £10,000 per year. Careful planning can help you manage withdrawals to stay tax-efficient.
Is income drawdown better than an annuity?
This will depend on your lifestyle. Income drawdown offers flexibility. You control how much you take and how your pension remains invested, with potential for growth. But, it carries investment risk and the danger of running out of money if withdrawals are too high or markets underperform. Annuities provide a guaranteed income for life, offering security but less flexibility and poorer value if you die early. If you want certainty and no investment risk, an annuity may suit you. If flexibility and growth potential appeal, drawdown could be better, with careful planning. We have more information on choosing here.
If you’re unsure which is right for you, then you should speak to a financial adviser. At Aviva, we also offer financial advice.
Apply for pension drawdown with Aviva
You can apply for pension drawdown using MyAviva.
- Just log in to your account.
- Select ‘Details’ under your pension.
- Choose ‘My Options’ in the top right menu, then ‘Withdrawals’.
Get some advice on taking your pension
Looking for financial advice?
If you have a pension or investments worth more than £150,000, Aviva can give you personalised advice to help you use your pension in a way that suits you.
Pension Wise
Pension Wise from MoneyHelper is a service backed by the government. It offers free, impartial guidance to over 50s. They can explain the options to take money from your defined contribution pension pots.
The next steps for your pension journey
We’re here to help you find the information you need to make the most of your pension in retirement.
Pension and retirement support 
Our chatbot can answer your questions, give you the lastest information and point you to the right resources. It’s available 24/7.
Guidance or advice? 
Understand whether you need free, simple guidance for your pension or if you’d be better off paying to chat to a financial adviser.
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We can take you through the different ways you can take your pension. And give you some pointers on how to make it go further.