Income Drawdown Plan

A flexible way to control the level of income you receive when you retire. Draw as much or as little as you like from your retirement fund, leaving the remainder invested to potentially carry on growing. A useful way to manage your income according to your retirement and tax planning needs.

With no plan set-up fee or ongoing service charge, the charges you pay simply depend on the funds you invest in and how often you change the level or frequency of income you receive.

The LFS Income Drawdown Plan offers a wide range of risk-rated funds and even allows you to pass on your pension fund tax-free when you die, in some circumstances.

Income Drawdown Plan:

  • Take up to 25% of your pension fund as tax-free cash
  • Taxable income payments to suit your needs (on a regular or ad-hoc basis)
  • Benefit from any potential future investment growth
  • Choose where to invest from a range of portfolios
  • Pass on your savings tax-free if you die before age 75.


  • Are aged 55 or over (or eligible to take your savings earlier)
  • Have at least £25,000 to invest after taking your tax-free cash and paying adviser fees.

The Income Drawdown Plan may be right for you if you:

  • Want flexible income payments
  • Want to keep your retirement savings invested
  • Are willing to take the risk that your savings could decrease
  • Understand that your income and savings are not guaranteed.

To find out more about the Income Drawdown Plan please read the plan information shown here. It gives you all the detail you need to understand how the plan works and which funds you can invest in.

Key Features
Guide to Investment Funds
Guide to Investment Risk
Terms and Conditions

Key forms:

Application form
Adviser instruction form
Fund switch form
Illustration request form
Income request form
Lifetime Allowance Calculation
Lifetime Allowance Declaration
Nomination of Beneficiaries form
Transfer in form

phillip.jpg (1)

Philip manages his retirement income to minimise tax

Philip has a pension fund of £120,000. He wants the flexibility to manage his retirement income so that he doesn't start paying higher rate income tax. He sets up LFS's Income Drawdown Plan that allows him to choose a certain level of income. If he needs to, he can top up his income by taking ad-hoc payments. His financial adviser monitors his investment funds to make sure they're on track to continue providing an income for the future.

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

Ready to apply?

The first thing to do is speak to your 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

You cannot apply directly to LFS for this plan.

Not sure? Find out about a different product

  • 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
    • Choose what taxable cash withdrawals you need
    • Invests in the LF Cash Fund
    • 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”.