Age 55 is the current minimum age the Government allow people to access a pension. This will increase to age 57 from April 2028.
When you come to take your pension, there are six ways you can do this.
Choices we offer
1. Leave your pension where it is
You don’t have to start taking money from your pension straight away. You can leave it with us until you need it.
2. Take your whole pension in one go
You can cash in your entire pension–a quarter is tax-free, and the rest is taxed as income. This can be great if you have a smaller pension you just want to cash in, but if your pension is quite big you could face a big tax bill.
Choices with other pension providers
3. Adjustable income
You can take a quarter of your pension tax-free at the start. The rest of your pension is invested to give you a regular income. You decide how much to take and when, and how long it will last.
4. Take cash in smaller sums
You can take smaller sums of money from your pension until you run out. A quarter of what you take is tax-free, the rest is taxed as income.
5. Buy a guaranteed income
Use your pension to buy an insurance policy that guarantees you an income for the rest of your life – no matter how long you live.
6. Mix your options
You can mix different options. Usually, you need a bigger pension to do this.
A financial adviser can recommend the best option for you and your circumstances. And, they can also set this up for you.
Depending on which option you choose, you might be subject to new tax rules if you want to keep saving into another pension.