Using your money

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.

Visit Pension Wise

pension wise