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 are my options
Time to think about your retirement options but you’re
not sure what they are?
Normally there’s six different choices, but as with many
things in life there’s pros and cons for each option, and
some might not be available or right for you.
So, what are the options? You can leave your money
where it is. You can take the whole pension pot at once
or opt to take it in smaller lump sums. You might want
to create a flexible income, guarantee an income or
you might decide to mix it up with a combination of
options.
Remember though, it’s really important not to rush into
things but explore each option carefully. We
recommend you get in touch with Pension Wise.
Pension Wise is a government service from
MoneyHelper that offers free, impartial guidance. It’ll
talk you through your options to help you make the
right decision.
You should also consider seeking independent
financial advice to help you make the right decisions
for your specific personal situation.
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.
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.
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.
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.
It’s a good idea to speak to someone impartial when you’re making big life choices like retirement planning. There are plenty of options to consider, so taking advice could help you find the one that’s best for you.
If you’re 50 or over you can access Pension Wise, a government service from MoneyHelper. You should also get independent financial advice before making any decisions about how to access your pension savings. If you don’t have a financial adviser already we’ll be happy to help you find one.
You’ll also find advisers local to you at Unbiased.
