If you’ve reached the age of 55 you can cash in your Phoenix Life pension as a single lump sum. You’ll usually get the first 25 per cent tax free, and pay income tax on the rest. There are some things it’s worth considering before you make your decision, like:
- How you’ll make the most of your money, so it lasts for your whole retirement
- Any other tax charges of cashing in and how that might affect your pension
- How a lump sum could affect you getting state benefits
Our guide to things you should consider gives you more information to help you decide whether cashing in is right for you.
You have plenty of other ways to access your pension once you’re ready to, and you’ll find information about them in our retirement centre. Here’s a quick summary:
- Keep your pension savings where they are
- Buy an annuity for a guaranteed income
- Set up a flexible retirement income
- Take more than one lump sum
- Use a mix of options
We’ll send you all the information you need to make your decision before you take your benefits. We’d also strongly suggest that you take guidance and advice to help make sure you reach the decision that’s right for you.
