How can I access my money?

You can usually take up to 25% of your pension pot as a tax-free lump sum although you are not required to do so.

Your options for the remaining fund after any tax-free cash is taken include:

• A regular income payable for life, also known as an annuity. You can select options to allow the income to increase with inflation and/or to provide benefits following your death.
• A flexible income via income drawdown. This allows you to either withdraw regular income, payable monthly or yearly, or to take unlimited withdrawals. There may be minimum withdrawal amounts imposed by the providers. (F)
• Take your full fund as a cash lump sum. (F)
• Or a combination of the options to suit your circumstances.

You may have to transfer your partnership pension account to a different pension arrangement before you can exercise some of these options. Your provider can confirm the position.

Other than the tax-free cash lump sum all withdrawals are treated as taxable UK income. Additionally, if you take money from your account under a flexible option (marked F above) you may be subject to the Money Purchase Annual Allowance. More information about this can be found on the Tax on your private pension page on the GOV.UK website.

If you are 50 or over, or are retiring on ill health grounds, you can get free and impartial guidance on your options by booking an appointment with Pension Wise.  Appointments are available by telephone and face-to-face and take about 45 minutes. Further details are available on the Pension Wise website.