Upon retirement there are four options. Depending on what you choose, 25% of the pension savings you take can usually be tax-free, with the remainder subject to normal income tax rules.
Option 1: Pension
You will be able to buy a pension for life, known as an annuity, where you will receive a guaranteed regular income until death.
Option 2: Income drawdown
You will be able to enter into an income drawdown facility where you can leave your pension savings invested and withdraw money as and when you like.
Option 3: Cash
In most cases you will be able to take all or some of your pension savings as a cash lump sum, of which 25% is non- taxable, and you can then decide yourself how to spend, invest or save it.
Option 4: Combination
A combination of some, or all, of the above.