It's a basic question but something I couldn't get a clear answer on the Martin Lewis website.
If someone had a £1M pension pot and decided to have a draw down pension, they could expect an income of 4% per annum, but could they also draw down a portion of that £1M pension? So they could get £40K income at the 4% which is effectively the annual interest on the amount but they could also draw down £30K from the capital amount giving them a total annual income of £70K and then the next year the capital amount would be reduced to £970K.
Is this correct?