Get the lowdown on drawdown

Your savings in the DHL Group Retirement Plan (the Plan) are likely invested in our default investment strategy: DHL Lifestyle Drawdown. This strategy is designed to be suitable if you plan to transfer your pension account out of the Plan into a drawdown arrangement.

What is drawdown?

Drawdown is a flexible retirement option that allows you to keep your pension savings invested after you retire. Unlike an annuity (a pension for life), you’re not locked into fixed income payments. Instead, you can withdraw your money as and when you need it.

Read more news

Is drawdown right for you?

The pros:

The cons:

Flexibility: You have control over your withdrawals, meaning you can tailor your income to your lifestyle.
Potential for growth: Your pension savings remain invested, meaning they can continue to grow.
Tax-free lump sum: Like with all your retirement options, you can take a tax-free cash lump sum of up to 25% of your transfer value.

Investment risk: Your savings will remain invested, which means they have more time to grow, but depending on how they’re invested, their value could go down as well as up.
It’s all on you: You’ll need to carefully manage your withdrawals to make sure your savings last throughout your retirement. That means drawdown can be more complex to manage than an annuity and will require some careful financial planning.

Making the right choice

Your retirement savings will need to support you through retirement, which could be more than 30 years. It’s important you consider all your options carefully. See MoneyHelper's website to find a Financial Adviser and details of PensionWise, a government service that offers free, impartial guidance to over 50s, to help you make the choice that’s right for you.

Learn more about your options