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 55^th birthday. You won’t be able to change your mind later so you must consider this option carefully before making a decision.

If 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.