What is a bridging pension — and when does it make sense?
If you stop working before state pension age, there's a gap — potentially several years — where your private pension is the only income source. A bridging pension is the strategy of drawing down at a higher rate during that gap, then reducing withdrawals once the state pension starts.
- ▸A bridging pension covers the income gap between stopping work (or accessing a private pension) and reaching state pension age — currently 66, rising to 67 by 2028 and 68 thereafter.
- ▸The strategy involves withdrawing more from the private pot during the bridge period, then dropping withdrawals once the state pension provides baseline income.
- ▸For someone retiring at 60 with a state pension age of 67, the bridge is 7 years. At £12,000 per year (roughly matching the state pension), that is £84,000 drawn from the pot before state pension income begins.
- ▸The risk is straightforward: the higher early withdrawals permanently reduce the pot, and if the state pension is less than expected or costs rise faster than planned, the remaining pot may not sustain the required income.
The gap between private pension access and state pension age
Most people can access their defined contribution pension from age 55 (rising to 57 from April 2028). The state pension currently starts at 66, rising to 67 between 2026 and 2028. The gap between the earliest private pension access and the state pension is at least 9 years — and for someone who retires at 57, it could be 10 or more.
During that gap, there is no state pension income. If the retiree has no other income source — no defined benefit pension, no rental income, no part-time work — the private pension pot must cover everything.
This is where the bridging pension concept applies. Rather than drawing a level income from the pot for the entire retirement, the retiree draws a higher amount during the pre-state-pension years, then reduces the withdrawal once the state pension starts and partially replaces the private income.
Check your own state pension age with the state pension age calculator.
How a bridging pension works
The mechanics are simple. Suppose someone retires at 60 with a £300,000 pot and a state pension age of 67. They want £20,000 per year in total retirement income.
During the bridge (age 60–67): The full £20,000 comes from the private pot. Over 7 years, that is £140,000 withdrawn (before accounting for any investment growth or losses on the remaining pot).
After state pension starts (age 67+): The full new state pension of approximately £12,000 per year covers most of the baseline. The private pot only needs to provide the remaining £8,000 per year.
The pot at age 67 — after 7 years of heavy withdrawals — might be around £180,000–£200,000 (depending on investment returns). At an £8,000 annual withdrawal rate, that is a 4.0–4.4% withdrawal rate, which is in the zone that historical data suggests is sustainable for a 25–30 year period.
Without the bridging concept, a level £20,000 withdrawal from age 60 would deplete the pot faster, because the state pension's eventual contribution is not factored in. The bridging approach front-loads the spending from private resources and back-loads the state pension income — an intentional asymmetry.
The bridging pension calculator models this scenario with custom inputs, showing the pot trajectory before and after state pension age.
The maths: does drawing down early pay off?
The bridging strategy's viability depends on three numbers: the size of the gap (in years), the withdrawal rate during the bridge, and the investment return on the remaining pot.
A higher bridge withdrawal means a smaller pot when the state pension starts. If markets also fall during the bridge period — sequence of returns risk — the combination of high withdrawals and falling asset values can be severe. A 20% market drop in year two of a 7-year bridge, combined with £20,000 annual withdrawals, would reduce a £300,000 pot to roughly £200,000 by the end of year three — a level from which recovery becomes difficult.
Conversely, if markets perform well during the bridge, the pot may barely shrink despite the higher withdrawals. A 7% annual return on a £300,000 pot generates £21,000 in year one — more than covering the £20,000 withdrawal.
The break-even question is: does the reduced withdrawal rate after state pension age compensate for the heavier early depletion? In most scenarios with moderate returns (3–5% real), the answer is yes — but only if the bridge period is not too long and the withdrawal rate during it is not too high relative to the pot.
As a rough guideline: if the bridge withdrawal represents more than 6–7% of the starting pot per year, the strategy becomes fragile. On a £300,000 pot, that is about £18,000–£21,000 per year — coincidentally close to the level many retirees target.
The pension drawdown calculator can model the full trajectory across both phases.
The risk: living longer than the bridge
The bridging pension strategy optimises for a specific scenario: a defined gap followed by state pension income. If the gap turns out to be longer than expected — because the state pension age rises again, or because the retiree started the bridge earlier than planned — the pot takes a larger hit than projected.
The UK government has a track record of increasing state pension age. Someone planning a bridge based on a state pension age of 67 may find it has risen to 68 by the time they get there, extending the bridge by a year and costing an additional £12,000–£20,000 from the pot.
There is also the risk that the state pension itself provides less than expected. Someone with fewer than 35 qualifying National Insurance years will receive a reduced state pension, making the bridge longer or the post-bridge withdrawal requirement higher.
Finally, inflation during the bridge period erodes purchasing power. If the retiree fixes their bridge withdrawal in nominal terms, they may find that £20,000 in year seven buys noticeably less than in year one. Increasing the withdrawal for inflation during the bridge accelerates pot depletion.
None of these risks are reasons to avoid a bridging strategy. They are reasons to model it carefully, build in a margin of safety, and revisit the plan periodically.
- •A bridging pension strategy involves higher early withdrawals that permanently reduce the pot. If investment returns are poor during the bridge period, the remaining pot may be insufficient.
- •State pension age may change. Strategies based on a specific start date carry the risk that the date is pushed back.
- •The full new state pension requires 35 qualifying National Insurance years. A shorter NI record means less state pension income and a higher ongoing withdrawal requirement from the private pot.
- ▸The minimum pension access age is 55 (rising to 57 from 6 April 2028). The state pension age is 66, rising to 67 between 2026 and 2028. [gov.uk]
- ▸The full new state pension for 2026/27 is £230.25 per week (approximately £11,973 per year), payable to those with 35 qualifying years of National Insurance contributions. [gov.uk]
This is factual information, not financial advice. If you're unsure what's right for your situation, speak to an FCA-regulated financial adviser.