What are my retirement options?
Once you’ve saved your pension pot, you need to decide what to do with it. You've several options to choose from. You'll need to decide which one is right for you.
What would you like to do with your pension plan?
Keep it where it is
You don’t have to start accessing your pension savings when you reach the date shown on your plan. You can leave them where they are until you're ready to make use of them.
Keeping it where it is
Create a flexible income
You have flexibility to use your pension savings as and when you need (pension drawdown). You can usually take up to 25% as a tax free lump sum and choose how the rest of your pension savings are invested.
Creating a flexible income
Take a number of lump sums
You can leave your money invested and take as many lump sums from your pension pot as you'd like. The first 25% of every withdrawal is usually tax free and you may pay tax on the rest.
Taking a number of lump sums
Guarantee an income (annuity)
You can use your pension pot to buy an annuity which guarantees a certain level of income for life or for a specified term.
Guaranteeing an income (annuity)
Cash-in your pension
There’s usually the option to cash-in your whole pension pot. The first 25% is normally tax free, income tax is deducted from the rest before it’s paid to you.
Cashing in your pension
Take a mix of options
You can split your pension savings across a mix of the different options to give a blend of income, lump sums, additional investment and more.
Taking a mix of optionsHandy tools to help you plan
How much tax will I need to pay if I cash in my pension as a lump sum?
Use the lump sum tax calculator