Do I have to take tax-free cash when buying an annuity?

No, you don’t have to take the money although it’s a one-off opportunity to take some of your savings as tax-free cash any time after your 55th birthday. You won’t be able to change your mind later so you must consider this option carefully before making a decision.

If you choose not to take your tax-free cash all your pension savings will be used to provide an income. This will enable you to obtain a higher income, but this will be subject to income tax in the usual manner.

Find out more about buying a guaranteed income (also called an ‘annuity’)

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