Taking Money out
The purpose of a pension is to help you to live comfortably in retirement. Benefits can usually be taken any time from age 55, although employer related schemes may stipulate a different age.
At retirement, legislation currently allows you to take money out of your pension fund in a very flexible way. These options include:-
Taking up to 25% as a tax-free lump sum
Your entire pension savings being taken as a cash lump sum (income tax applies)
Converting pension savings into a taxable income, payable for the rest of your life
Entering a flexi-drawdown arrangement to make withdrawals whenever you like, whilst keeping your pension funds invested
Taking Uncrystallised Funds Pension Lump Sums (UFPLS)
Any combination of these
You must understand the importance and implications of the decision you make regarding accessing your pension savings. We believe that independent financial advice is vital at this time and recommend you to contact us to discuss your needs and objectives in detail. Please contact us by clicking here.
If you have pension savings in excess of the Lifetime Allowance, tax penalties will apply when you take money out of your pension.