Taking money from your pension

One of the benefits of your plan is the flexibility to take your cash in lump sums as and when you need it, or set up a regular income. Before you take money it's good to think about how this might affect how long your money may last.

 

If you haven't already done so, we recommend you speak with your financial adviser.

Some things to think about

How long will your money last?

This depends mainly on how much money you take out and how your funds are performing.

Taking a higher income or a lump sum increases the risk of your fund running out sooner. So, it may not last as long as you, and your loved one, need it to.

How much tax will you pay?

Taking money out might mean a change in the tax you pay. You should also know that tax rules can change.

How much are you still paying into your plan?

Taking money out of your pension pot sometimes triggers a limit on how much can be paid into it in the future. Find out more about the Money Purchase Annual Allowance.

How your other benefits could be affected?

Taking money out could mean certain state benefits that are based on your income or savings could be reduced or stopped. This applies to benefits like housing benefit or income support and if you have any debts, the creditor may have rights to any cash you take.

Do you want to leave money to a loved one ?

By increasing your income or taking a lump sum there will be less to leave behind to a loved one. 

What to do now

We always recommend you speak to your financial adviser before changing your income or taking a lump sum. If you don't have a financial adviser you can find one here.

Want to take money out

Use our calculator to see how taking money out of your pot can impact how long your money might last.
 

If you need help

We can answer any questions you have, but we can’t give financial advice

0808 234 2372.

We're here 8am - 6pm Monday - Friday.

If you're calling from abroad +44 1786 448 844.

Speak to a financial adviser

If you don’t already have a financial adviser, we can help. Book a no-obligation financial review with one of our advisers in your area.

We offer restricted advice.

Find out more

Where can I learn more?

Unbiased logo

Find an independent financial adviser in your area to help you in your future pension planning.

Visit
www.unbiased.co.uk

and enter your postcode.

 

Pension wise logo

We recommend you use Pension Wise, a free impartial guidance service from the government to help you understand your options at retirement.

Visit pensionwise.gov.uk or call 0300 330 1001 to book a phone or face-to-face appointment.

HMRC logo

Visit the www.hmrc.gov.uk to get information on tax rules and legislation which may affect you if you are saving, investing, or have a pension plan.