If you don’t need to access your pension pot, you can leave it invested.
This means you can continue to save and your pension pot may grow. But, as with all investments, there’s a risk that the value can go down as well as up.
If you take your whole pension pot in one go, you will pay tax on 75% of it at your highest tax rate for that tax year – which means you could end up with a big tax bill.
There are different ways of doing this depending on how much is in your pension pot.
Watch our video about taking it all in one go for a summary of this option:
You could take your pension pot a bit at a time over a number of years.
There are two different ways of doing this depending on how you want to take your 25% tax-free cash.
Watch our video about taking it a bit at a time for a summary of this option:
You could give all of your pension pot(s) to an annuity provider in exchange for a guaranteed income. Or you can take your 25% tax-free cash first, and then use the other 75% of your pot to buy a guaranteed income.
There are different types of income – and the amount you’re offered will depend on the options you choose.
Watch our video about buying a guranteed income for a summary of this option:
Does The People's Pension offer this option?
Will I pay tax on the money I receive?
Will this option affect my tax relief if I want to continue saving into a pension?
Is the money guaranteed to last for the rest of my life?
Do I have any other choices, once I have selected this option?
Can I leave money to someone when I die through this option?
What are the risks?
How do I choose this option with The People's Pension?
|All your options at retirement||Keep your money where it is||Take it all in one go||Take it a bit at a time||Buy a guaranteed income or 'annuity'|
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Where to get guidance and advice
Retirement planning = big decisions
Find out where to get help (our website, Pension Wise or LV= to name but a few).