Pension drawdown glossary
Once you take taxable money from a defined contribution pension flexibly — such as a drawdown income or a UFPLS payment — the amount you can pay into defined contribution pensions with tax relief falls to £10,000 a year. Taking only tax-free cash does not trigger it.
Source: GOV.UK: check if you have gone above the money purchase annual allowance · 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.