While it is possible to draw everything out of your pension, it isn’t a good idea. You will end up paying tax (at the highest rate) on 75% of your pension, meaning you stand to lose a substantial amount of your hard-earned investment. You can, however, take out 25% as a tax-free lump sum and leave the rest invested into funds designed to provide you with a regular taxable income. You set the income you want, although this might be adjusted periodically depending on the performance of your investments or changes to your lifestyle. It's important to remember that your pension is supposed to support you for life. If you drawdown too much of your pension too quickly, you could run out of money in retirement and be forced to live on the state pension alone.