An annuity
Swap some or all of your pension for a guaranteed income, usually for life.
Suits: Wanting a set income you can’t outlive
Making it last
Retirement income
You’ve saved into a pension. Now you choose how to take it, and the choice matters for the rest of your life.
Plain English, and nobody will try to sell you anything.
Ways to take your pension.
With a defined contribution pension, you can usually mix and match these.
Drawdown
Leave the pension invested and take money out as you need it.
Suits: Wanting flexibility, and able to take some risk
Lump sums
Take cash as and when. Usually a quarter is tax-free; the rest is taxed as income.
Suits: Smaller pots, or one-off needs
Equity release
Money from your home. It needs regulated advice.
Suits: Homeowners, usually aged 55 or over
Before you decide.
Get free guidance. Pension Wise, from MoneyHelper, explains your options for free if you’re 50 or over with a defined contribution pension.
Advice is worth it. A regulated financial adviser can recommend what suits you. They charge for it, so ask how much first.
Watch the tax. Taking a lot in one year can push you into a higher tax band.
Beware of scams. Cold calls about your pension are illegal. Hang up.
Where to start.
A little time now can make your money go further later.
Step 1Find all your pensions.
Old workplace pensions add up. Check your State Pension forecast on gov.uk too.
Step 2Book Pension Wise.
A free, impartial appointment that walks you through your options.
Step 3Get advice if you need it.
For a bigger pot, or a tricky choice, speak to a regulated financial adviser.
Retirement income questions.
Short answers to what people ask most.
When can I take my pension?
Usually from 55 for a personal or workplace pension, rising to 57 from 2028. The State Pension starts at State Pension age, which you can check on gov.uk.
Can I take a lump sum tax-free?
Usually up to a quarter of a defined contribution pension, within limits. The rest is taxed as income when you take it.
What is Pension Wise?
A free, impartial government service from MoneyHelper, for people aged 50 or over with a defined contribution pension. It explains the options without selling anything.
Do I need a financial adviser?
You don’t have to have one, but many people find it worth it. An adviser recommends what to do; Pension Wise explains the options.
How do I spot a pension scam?
Cold calls, offers to unlock your pension early and promises of high, guaranteed returns are all warning signs. Check the firm on the FCA register.
Do you give pension advice?
No. We’ll point you to Pension Wise and to where you can find a regulated adviser.
Useful information
Pension Wise
Free, impartial pension guidance for people aged 50 or over with a defined contribution pension. Book at moneyhelper.org.uk.
Your State Pension
See how much you could get, and when, at gov.uk/check-state-pension.
Check a firm
Make sure any adviser or pension firm is authorised on the FCA register.
Still need support?
Ask a real person where to start, and we’ll point you to free guidance and regulated advice.
Monday–Thursday 9am–7pm, Friday 9am–3pm