Generating your retirement income


When it comes to taking your retirement income, you now have more choice than ever before about when and how.

So, what are your options? Your first decision is whether you’d like to take any tax-free cash from your personal pension savings. You can take up to 25% completely tax-free. 

Your next decision is how to use the rest of your pension pot to give you an income in retirement.

Staying invested

If you don’t need to generate an income for retirement just yet, you can choose to defer taking your pension income or  leave your pension savings invested.

Securing a guaranteed income

You give an insurance company your pension savings and in return, they pay you a guaranteed income every year for the rest of your life.

Using drawdown

With income drawdown, you invest your pension savings and then take an income from your investments.

Taking cash out

Under the rules introduced in April 2015, you can take out your entire personal pension savings as cash – however there will be tax to pay.