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You can access your pension savings as one or more cash lump sums. There are two options;

Flexi Access Drawdown

You can take 25% of your savings as tax-free cash and then decide to receive a series of taxable payments, either straight away or from a later date.
After having taken your tax free cash lump sum, you can leave your Personal Account savings invested within the Trust and withdraw some or all of it at a later date. Typically, you will have to pay tax on the income you receive, at your marginal rate.
You can choose to receive payments on either a regular basis (e.g. monthly), or as required.

Cash Lump Sums

You can take your savings as one or more cash lump sums. Typically, you will have to pay tax on 75% of each payment you receive, at your marginal rate.
If you do not withdraw all of your Personal Account, you can leave your savings invested within the Trust and withdraw some or all of it at a later date.

You are in control

There are no maximum or minimum limits on deciding how much income you can take; you decide the size of your income and how much to take. You can change your decisions (e.g. increase or decrease your income) when it suits you. This may also affect any means tested state benefits that you may be entitled to.
It is important to note that with this option, you manage how much income you can afford to take. If you take too much income, you may deplete your savings and have to reduce your income in the future.


Manage Benefits Online

How much income to take and when? Deciding how much income to take will depend upon;

How long you wish to receive an
income for?

You may decide to receive your income in one go or over a set period of time. Alternatively, if you wish to receive your income for the remainder of your life, you will need to consider that the longer you live, the more risk there is that your savings could run out.

fund performance

If your funds perform badly, your retirement savings may fall in value. If your funds perform well, this can give your savings a boost.

Whether you want to pass on your
savings to your beneficiaries?

The more you want to pass on, the less you can take.



Advantages of flexible income

Potential for your pension to grow

The invested part of your pension will have the opportunity to grow. You could benefit from future stock market growth free from UK income and capital gains tax.



You can keep your options open and take an income as and when you need it.



Pass on your wealth

You can pass on what’s left in your pot to your loved ones, usually free of inheritance tax, when you die.

Investment choice

You can choose your own investments, you’ll be in control.

Important things to think about

​No guarantees

You could run out of money if your investments perform poorly, you withdraw too much or you live longer than expected. Remember your income stops when your money runs out so you need to consider the longer-term impact of making withdrawals from your pot because you could run out of money before you die.


You’ll need to be hands-on

You’ll need to regularly review your investments and may need financial advice.

Payments into any pension could be restricted

Going over your tax-free cash limit (when you start accessing taxable income) restricts the payments you or an employer can make to any of your pensions, normally to £4,000 a year. This can be a problem if you’re still earning and either have other savings you want to pay into a pension or if you intend to make significant payments into any of your pensions.

State benefits could be affected

Your entitlement to means-tested state benefits, if applicable, may be affected if you take cash or income from your pension – check this isn’t going to be a problem before going ahead.

Remember that the value of your investments can go down as well as up