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Taking an income from your savings

When the time comes to take an income from your retirement savings, you have a range of choices. It’s important to understand these choices and the risks of each, so you can make a decision which suits your needs.

This short video explains the different ways you can take an income and provides tips on protecting your money.

If you want more information on your choices, you can read your Retirement Guide . Alternatively, read on and follow the links for the solution you are interested in.

A flexible income
If you want the flexibility to vary when and how much income you take out of your savings, you can leave your retirement savings invested. This allows you to take a regular taxable income and/or one off taxable lump sums. You can also take up to a quarter of your savings as a tax-free lump sum. More

A secure income
If you prefer the comfort of a guaranteed income for the rest of your life, you can use some or all of your savings to buy an annuity. This income is also taxable, but you can also take up to a quarter of your savings as a tax-free lump sum. More

Cash lump sums
You can also take some or all of your savings as a one-off or series of lump sums – a quarter is tax-free. More

You can also take a mix of each solution, if it suits your needs.

Working out what you might get and tax

If you would like an idea of what income you might get, you can use the Retirement Planner tool. By logging in to your online account, it will prefill some of the information from your account to make it easier.

Once you have an idea of what income you may be taking, you can use the Tax Planning tool to see what the tax hit on your income might be.

Free government guidance

Did you know that, if you are aged 50 or more, you could get free guidance on each of the income options available? By contacting Pension Wise, you can set up an appointment with a pension specialist, over the phone or somewhere local to you.

You can find out more by going to their website.