Recent changes as part of Pension reform Freedom and choice removed the requirement to purchase an annuity at retirement with a defined contribution pension . Income drawdown as one of the other available options allows an income to be taken directly from the pension fund itself.
Unlike Phased Retirement under drawdown, income is taken directly from the fund. Since April 2015, and under the Pension freedom rules, it may be possible to take an unlimited level of income from the plan. Before this, the maximum income was set by the Government Actuary's Department (GAD), who set limits based on the size of the fund, age, sex and gilt yields. This was applicable with Capped Income Drawdown products which still exist.
Since April 2015 there is now much greater freedom to choose how you use your pension fund. See New Rules About Pensions.
A PENSION IS A LONG TERM INVESTMENT THE FUND VALUE MAY FLUCTUATE AND CAN GO DOWN. YOUR EVENTUAL INCOME MAY DEPEND UPON THE SIZE OF THE FUND AT RETIREMENT, FUTURE INTEREST RATES AND TAX LEGISLATIONS.