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Without very careful planning, you could run out of money and have nothing to live on You could close your pension pot and take the entire amount as cash in one go if you wish. Normally, the first 25% (quarter) will be tax-free, and the rest will be taxed at your highest tax rate by… Continue reading Cashing in your entire pension pot

Taking money from your pension as and when you need it You can use your existing pension pot to take cash as and when you need it and leave the rest untouched where it can continue to grow tax-free. For each cash withdrawal, normally the first 25% (quarter) is tax-free, and the rest counts as… Continue reading Small cash sums from your pot

Re-investing funds designed to provide you with a regular taxable income With this flexible retirement income option known as ‘flexi-access drawdown’, you can normally take up to 25% (a quarter) of your pension pot or of the amount you allocate for drawdown as a tax-free lump sum, then re-invest the rest into funds designed to… Continue reading Flexible retirement income

Choosing a taxable income for the rest of your life You can normally withdraw up to a quarter (25%) of your pot as a one-off tax-free lump sum, then convert the rest into a taxable income for life called an ‘annuity’. There are different lifetime annuity options and features to choose from that affect how… Continue reading Purchase an annuity

Restrictions or charges for changing your retirement date You might be able to delay taking your pension until a later date if your scheme or provider permits this. If you want your pension pot to remain invested after the age of 75, you’ll need to check with your pension scheme or provider that they will… Continue reading Delaying taking your pension

One of the most important decisions you will make for your future Under the pension freedoms rules introduced in April 2015, once you reach the age of 55, you can now take your entire pension pot as cash in one go if you wish. However, if you do this, you could end up with a… Continue reading Turning pensions into money you can use

Putting a value on your pension savings in the future The pension lifetime allowance is a limit on the value of payouts from your pension schemes – whether lump sums or retirement income – that can be made without triggering an extra tax charge. The lifetime allowance for most people is £1,030,000 in the tax… Continue reading Pension lifetime allowance

Things you can do to increase your chances of success The future may seem far away, but you need to start planning early. Regardless of your goals, there are things you can do to increase your chances of success! It is important to look objectively at your plans and adapt them as your priorities change… Continue reading Start planning early

Making the most of the next chapter in life Pensions can seem complicated, but the basic idea is a simple one. And increasingly, if appropriate, people are turning to private pensions as a tax-effective way to increase their retirement income. Once you’ve decided to start saving for retirement, you need to choose how you’re going… Continue reading Can you afford to retire?

Make the most of the early years and maximise from the power of compounding Retirement might seem a long way off, so it’s easy to understand why saving for retirement isn’t a priority in your 20s – a decade when advancing your career, not planning for the end of it, seems more important. But, youth… Continue reading Think pensions are only for ‘older’ people?