Pension freedoms allow large withdrawals from age 55 (rising for younger savers). Freedom without a plan can leave a pot depleted while decades of spending remain. Our retirement income work centres on sequencing: which wrapper pays first, how much, and what happens if markets fall in the early years.
A common pattern is to keep two to three years of planned withdrawals in lower-volatility holdings, with the remainder invested for longer growth. That buffer reduces the need to sell growth assets after a sharp fall.
Tax also shapes the schedule. The 25% tax-free cash element can be taken gradually under some arrangements, spreading the benefit. Excess withdrawals enter income tax and may push you into a higher band, affecting personal allowance taper in extreme cases.
We illustrate three withdrawal paths in client reports: a baseline rate, a cautious rate, and a higher rate with clear risks marked. Numbers are illustrations, not guarantees — investment returns and longevity remain uncertain.
If you have already started drawdown and feel unsure about the pace, an Investment Portfolio Review or full Retirement Income Planning engagement can recalibrate the schedule before small overdraws become hard to reverse.