Answers · UK 2025/26
How does pension flexi-access drawdown work in the UK?
Flexi-access drawdown lets you withdraw flexible amounts from your pension from age 55+ while the rest stays invested. Typically 25% taken tax-free, 75% taxed as Income Tax at your marginal rate. First taxable withdrawal triggers MPAA £10k.
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UK Flexi-Access Drawdown (FAD) 2025/26. For DC pensions, from NMPA 55 (57 from April 2028). Options. Option A: 25% tax-free lump sum + 75% in drawdown taxed at marginal rate as drawn. Option B (UFPLS): 25% of each withdrawal tax-free, 75% taxed; pot stays uncrystallised. Option C: phased crystallisation. Tax planning: stay below higher-rate by managing annual withdrawals. £12,570 PA + £37,700 basic-rate band = £50,270 max at basic rate. MPAA: any taxable drawdown triggers £10k future contribution limit. TFLS-only withdrawal does NOT trigger MPAA. 4% safe withdrawal rule: rule of thumb for 30+ years. From April 2027 — pensions in IHT estate changes drawdown planning.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.