How flexi-access drawdown works
Flexi-access drawdown (FAD) is the standard form of pension drawdown introduced by the 2015 pension freedoms. You can take up to 25% of your pot tax-free, move the rest into a drawdown account that stays invested, and then withdraw as much or as little taxable income as you like, whenever you like. There is no cap on withdrawals and no minimum.
| Provider | FAD charge | Min withdrawal | Tax-free cash handling |
|---|---|---|---|
| AJ Bell | 0.25% platform, no FAD fee | None | Flexible — phased or one-off |
| Vanguard | 0.15% (cap £375) | None | Phased drawdown supported |
| Hargreaves Lansdown | 0.45% (cap £200 shares) | None | Highly flexible, phone support |
| interactive investor | £12.99–£21.99/mo flat | None | Flexible, good for big pots |
| Standard Life | ~0.35%–0.50% tiered | None | Guidance-led, adviser-friendly |
Phased vs full crystallisation
A powerful FAD feature is phased drawdown: rather than taking all your 25% tax-free cash at once, you crystallise your pot in slices, taking 25% tax-free from each slice as you go. This keeps more money invested tax-efficiently and can reduce your income tax bill across retirement. AJ Bell, Vanguard and Hargreaves Lansdown all support phased drawdown.
Tax to watch
Only the first 25% is tax-free; everything else is taxed as income. Take a large lump sum in one tax year and you could be pushed into a higher band, and your first flexible withdrawal often triggers an emergency tax code that you reclaim from HMRC. Taking flexible income also triggers the Money Purchase Annual Allowance, cutting future contributions to £10,000 a year.
Verdict
For low-cost flexi-access drawdown, AJ Bell and Vanguard lead; Hargreaves Lansdown wins on service and phone support, and interactive investor on large pots. Learn how to set a sustainable income in our 4% withdrawal rule guide, compare providers in our best drawdown providers guide, and plan with our pension calculator.