What is income drawdown, or pension drawdown?

What is income drawdown, or pension drawdown? There are alternatives to taking a pension annuity when you retire. Instead of buying an annuity you could place your fund into an income drawdown plan…a plan that offers greater flexibility as to how you take your pension. This is intended as a brief description of the product. Proper advice should be taken. Basically, it is the name given to the option to continue keeping your pension fund invested, and taking an income from it each year…instead of the annuity route. It can only run to age 75 when an annuity must be bought or the money transferred into an Alternatively Secured Pension (ASP). Advantages: greater freedom of investment, the right to defer buying an annuity until rates improve,  the avoidance of having to buy an annuity as it (the annuity) will not provide a return on premature death, and, delaying buying the annuity could get you a better deal because you will be older. This route is not suitable for everyone. You should have a pension fund at retirement of at least £50,000, and have assets elsewhere. Ideally, you will also have some income coming in from elsewhere as well, such as from investments.