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Pensions explained

Pension Withdrawal

Investment Pathways

Investment Pathways provide a structured approach to managing pension savings as you transition into retirement. Most pensions can be accessed from the age of 55 (rising to 57 from 2028). While some people may choose to withdraw a lump sum or begin drawing a regular income, others may opt to leave their pension untouched for a longer period. Regardless of the approach, it's essential to have a strategic plan that aligns with your long-term financial goals.

Investment Pathways offer four distinct options. This allows savers to select a strategy based on how they intend to use their pension within the next five years.

How to choose between Investment Pathways

At PensionBee, we offer four goal-aligned drawdown Investment Pathways that you can explore either now or when you make your first withdrawal. You’re not obligated to pick a specific pathway, and you can make withdrawals from any of our plans if you feel they better meet your objectives.

What are the Investment Pathway options?

Retirement objective	PensionBee Investment Pathway	Investment style	Annual management fee	Asset allocation	Risk level
I have no plans to touch my money in the next five years	Tracker Plan	Invests your money in global shares and bonds. Investments follow the world’s markets as they move.	0.5^{_personal_allowance_rate}	8^{_personal_allowance_rate} equities, ^_basic_rate fixed income	Medium
I plan to use my money to set up a guaranteed income (annuity) within the next five years	4Plus Plan	Aims to achieve long-term growth of 4% per year above the cash rate, to provide a sustainable withdrawal rate before annuity purchase.	0.85%	Varies as fund is actively managed	Medium
I plan to start taking my money as a long-term income within the next five years	4Plus Plan	Aims to achieve long-term growth of 4% per year above the cash rate, by managing your money actively across a range of investments.	0.85%	Varies as fund is actively managed	Medium
I plan to take out all my money within the next five years	Preserve Plan	Makes short-term investments into creditworthy companies. This reduces risk and preserves your money.	0.5^{_personal_allowance_rate}	10^{_personal_allowance_rate} fixed income	Lower

Find out more on our dedicated pension plans page.

Why were Investment Pathways introduced?

In 2015, pension reforms gave individuals greater flexibility over their retirement savings held in defined contribution pensions. This included options to:

withdraw up to the full value of their full pension pot from age 55 (rising to 57 from 2028); or
take smaller amounts as and when needed.

A PensionBee survey found that 56% of people don’t seek advice before accessing their pension, often limiting its growth potential. Whilst pension freedoms provide greater flexibility in how and when people can access their pension savings, it also means people might have more complicated decisions to make and a greater need to consider their long term goals and requirements.

To address industry-wide concerns like this, the FCA launched the Investment Pathways initiative. This required all pension providers to offer four investment options aligned with key retirement objectives.

PensionBee was among the first providers to introduce Investment Pathways in November 2020.

Risk warning

As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. This information should not be regarded as financial advice.

Last edited: 21-05-2025

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