Using your pension
Turning pensions into money you can use
Your options
Under government rules you have a range of choices for how you use your pension money from age 55. What you choose is up to you, but we can help you to understand how it works and what’s possible. You can usually take 25% of your pension as tax-free cash whichever option you choose.
What you could get from each option
This is a basic comparison and does not include all options or considerations.
Be sure to understand what your provider offers and shop around to find the best option for you.
| Guaranteed income (annuity) |
Flexible income (drawdown) |
Take it all in cash |
Leave it where it is |
|
| Can your money run out? |
No | Yes |
Yes | N/A |
| Can you set up regular payments? |
Yes |
Yes |
No | N/A |
| Will it provide a guaranteed income for life? |
Yes |
No |
No |
N/A |
| Can you vary how much income you take? |
No |
Yes |
N/A |
N/A |
| Can you change your options later and use your pension differently? |
No |
Yes | No |
Yes |
Financial advice
If you’re looking for help with your pension or retirement options, our financial advice support team can help you decide whether financial advice is right for you.
Pension Wise
This government service offers free and impartial guidance on your retirement options, either over the phone or face to face.
Extra support
We're here to help you get the best from your pension.