Your pension is flexible. It can help you retire, continue working, or reduce your hours while topping up your earnings. You have several options when you retire. Select the one that suits your lifestyle.
Below is clear information about your options, how they differ, how to access your money, and how tax and charges apply. This also explains where to find trusted guidance, professional financial advice, and how to protect yourself from scams.
Leave your pension where it is
- You don’t have to take your pension as soon as it’s available.
- Keep working or change your work arrangements at your own pace.
- Delaying taking money may give your pension savings more time to grow through investment.
- You can leave your pension untouched if you have other income to live on.
Take lump sum payments
- Take money from your pension as a one-off or in several lump sums whenever needed. Usually, 25% of each lump sum is tax-free.
- Each lump sum goes straight to your bank account (after tax) to spend as you prefer.
- Any money left in your pension stays invested—it can go up or down in value.
- Plan so your savings last as long as you need them.
Flexible income (drawdown)
- Withdraw money from your pension when needed, either as regular payments, one-off amounts, or both.
- You have flexible access to your savings; withdraw what you need, when you need it.
- Money left in your pension stays invested and can rise or fall in value.
- Plan ahead so your savings do not run out.
Guaranteed lifetime income (annuity)
- Use some or all your pension to buy an annuity, which gives a guaranteed income for life.
- Receive regular payments over your retirement.
- Once you buy an annuity, you usually cannot change your mind.
- There are different types—shop around to find one that suits you.
Your pension needs to last throughout retirement, which can be many years. You can select one or a combination of these options to manage your income.