You could use your pension pot to buy an insurance policy that gives you a guaranteed income for the rest of your life. This is called an annuity.
- You get a fixed income for life or for a set number of years
- You can take 25% of your pot as tax-free cash and buy an annuity with the other 75%
- You pay tax on your annuity income at your normal income tax rate.
We don’t offer annuities and we can’t provide you with advice on this matter. You can find further information on our website or you can talk to a financial advisor for more guidance on your pension savings as they’ll take into consideration your individual situation.
Please note: A financial adviser may charge for advice. The fees for getting financial advice vary. Ask the adviser for more information before agreeing to an initial consultation.