Flexible access drawdown

There are a few ways to use your pension, and the key is to find one that suits your retirement. You could:

• Take a lump sum
  When you reach minimum pension age of 55 (57 from 2028), you can decide to take all your pension at once. You’ll need to be aware of what tax you'll pay.
• Take some of your pension money
  Most defined contribution pensions will allow you to take some money as a lump sum - with 25% of it being tax-free.  If you have a protected right to take a tax-free lump sum of more than 25%, this option won’t work for you.
• Leave your pension money where it is
  You don't have to take your pension at the minimum age. You can also leave it invested and potentially see it grow.

The key is to take your pension income in a way that works for you. This may be a single option, or more than one. You may want to consider:

When annuities make sense
 If you want a steady income in retirement, buying an annuity can give you a regular, guaranteed payment for however long you live. You can use money you’ve put into drawdown to buy an annuity later if you want. 

Getting financial advice
It can be a good idea to get professional advice before you choose what to do with your pension. Then you can be sure it suits your lifestyle.