Time to access your pension

From age 55 (increasing to 57 in 2028) you can start to access your pension savings. You can continue working if you wish, but it’s also a key time to start thinking about how you’ll draw your retirement income.

It’s completely normal to have questions about accessing your pension. Our advisers can walk you through the options available.

This option, known as an annuity, allows you to use part or all of your pension pot to create a regular income for life. It offers certainty, as you’ll always know how much you’ll receive, but it’s not flexible—once set up, it can’t be reversed. We’ll help you decide if this suits your needs and take care of the process for you.

Often referred to as drawdown, this option allows your pension to remain invested while you decide how much income to take and when. It offers more flexibility, but there’s a risk of taking too much too soon and potentially running out of money. We use cash flow forecasts to estimate how long your savings might last and offer tax-efficient guidance to help you manage withdrawals now and in future.

You can withdraw your pension all at once or in stages. Typically, 25% of each withdrawal is tax-free and the rest is taxed. We’ll guide you through the tax implications of this choice, as taking your pension in one go could significantly increase your tax liability.

Tax will depend on your circumstances and chosen option. Tax rules may also change over time.

It’s your pension, to be used in the best way for you. You might combine guaranteed income with flexibility by using part of your pot for an annuity and the rest for drawdown. We’ll help you find the right mix to suit your retirement lifestyle.

Not ready to access your pension yet? Leaving it invested could allow for further growth—but there’s also the risk of a drop in value. We’ll help ensure your pension is invested appropriately, conduct regular reviews and make sure your money is working for you until you need it