Cash Fund Drawdown

A simple way to withdraw your retirement savings over the short-term. Your money is invested in the low-risk Cash Fund that allows you to take taxable cash withdrawals as often as you wish. Before moving your money across to the plan, you can take up to 25% as tax-free cash.

The Cash Fund Drawdown is designed for customers who wish to deplete their pension over a short period of time. This can be useful when managing your tax matters, but you will need to plan carefully as you may find yourself paying more tax than you anticipated. You will also need an alternative source of income to support you during retirement.

If you wish to make regular withdrawals from your retirement savings, we provide the Income Drawdown Plan which may be more suitable.  

Cash Fund Drawdown:

  • Designed for those who want to deplete their pension fund over a short time
  • Take up to 25% of your pension fund as tax-free cash
  • Ad-hoc taxable cash withdrawals
  • Invests in the Cash Fund
  • Pass on your savings tax-free if you die before age 75.


  • Have at least £5,000 to invest after taking your tax-free cash and paying adviser fees
  • Are aged 55 or over (or eligible to take your savings earlier).

The Cash Fund Drawdown may be right for you if you:

  • Want to deplete your savings over a short period of time
  • Wish to take ad-hoc withdrawals not a regular income
  • Do not expect your savings to benefit from any potential stock market growth
  • Are willing to take the risk that your savings could decrease
  • Understand that your income and savings are not guaranteed.

Angela splits ad-hoc pension withdrawals over tax years

Angela has a pension pot of £20,000. She and her husband have a generous retirement income from their employers, so they do not need this pension to live on. Angela decides to take the money as cash, but if she takes it in one go, she will be pushed into paying higher rate tax for that tax year. Instead, she takes out an LFS Cash Fund Drawdown plan and takes her savings over two tax years, so continues to pay basic rate tax.

This example is for illustration only. It should not be taken as advice.

Ready to apply?

If you are investing £50,000 or more (after tax-free cash is taken), you cannot apply directly to LFS for this plan; you can only apply through a financial adviser. They will help you decide whether the plan is right for your personal circumstances. They will also help you through the application process. They may charge for their time. 

Find a financial adviser

You can find an FCA authorised financial adviser at or by calling 0330 1000 755, or you can visit the YourMoneyAdviser website at and key in your location to find an adviser near to you.

Use Pension Wise

Pension Wise is a government service that offers people approaching retirement free, impartial guidance about how to make best use of their pension savings. 
030 0330 1001

If you are investing less than £50,000 (after tax-free cash is taken), we strongly recommend that you seek advice from a financial adviser, but you can invest directly through LFS. Call us on 0345 055 0606 for more information.

Not sure? Find out about a different product

  • Income Drawdown Plan
    • Take up to 25% of your pension fund as tax-free cash
    • Choose what taxable income you need
    • Your pension fund remains invested
    • A medium to long-term investment
    • Choose where to invest from a range of portfolios
    • Pass on your remaining savings when you die
  • Capped Drawdown Plan
    • Closed to new business
    • Taxable income
    • Your pension fund remains invested
    • A medium to long-term investment
    • Invests in a range of funds and portfolios
    • Pass on your remaining savings when you die
    • Existing investors call us on 0345 055 0606
  • Personal Pension Plan
    • Tax relief can boost your pension savings
    • Make as many regular or ad-hoc payments as you like
    • Invest in a range of funds or choose a Lifestyle profile
    • Increase, decrease, stop and start your payments to suit your circumstances
    • Flexible ways to take your savings at retirement
  • Stakeholder Pension Scheme
    • Closed to new business
    • Receive tax relief on your pension savings
    • Simple and straightforward investment choices
    • Annual Management Charge not exceeding 1%
    • Flexible ways to pay to suit your circumstances
    • Your employer can make contributions too


LF Money Markets Pension Fund – change of underlying investment fund and fund name

Posted 10 Jan 2019 |

The underlying investment fund into which the fund invests, the Janus Henderson Money Market Unit Trust, is closing and will be replaced by the LGIM Sterling Liquidity Plus Fund (which is managed by Legal and General Investment Management Limited). In addition, the LF Money Markets Pension Fund will be renamed “LF Cash Pension Fund”.