Choices at retirement

There are a number of choices available to you in how you wish to take your savings at retirement and potentially during your retirement.

We have broken them down to give you a feel of what these choices mean to you in our handy animation or you can choose to read about the options in the drop down boxes below.

Please be aware of potential pension liberation scams - more information about protecting yourself can be found here.

A single lump sum

You could take all of your pension savings as a single lump sum. You can take up to 25% as a tax-free amount, and the rest would be taxed at your marginal rate. Be aware that this could move you into a different tax bracket.

A series of lump sums

You might decide that the best thing for you is to leave your money in your pension pot and only withdraw what you need when you need it, as a lump sum. This gives you the freedom to take lump sums as and when you want, while taking advantage of tax allowances. 25% of each lump sum will be tax free and the rest will be taxed. You can take up to 5 withdrawals.

An annuity with a tax-free lump sum

An annuity (a secure income for life) may be the best option for you. There is also the option of a tax-free cash lump sum plus an annuity using the remainder of your savings. An annuity might mean that you don’t need to worry about your money running out at a time when you still need it.