What happens when I retire?

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.