Pension drawdown glossary
Money kept in cash inside or alongside a drawdown pot to cover the next one to three years of withdrawals, so that investments do not have to be sold after a fall. It reduces sequence of returns risk but cash can lose value to inflation.
Source: MoneyHelper: flexi-access drawdown explained · Last reviewed 24 September 2026
See every term in the A–Z glossary. Definitions are general information for the 2026/27 tax year, not personal advice.
Important: The value of investments can fall as well as rise. You may get back less than you invest. Tax rules can change and benefits depend on individual circumstances. This is not financial advice.