Payment of Benefits

You can start to take your retirement benefits from age 55. You can take all your retirement benefits on the same day, or you can take them in stages.
When you decide to take your retirement benefits, there are a number of options available to you, including:

 

  • Tax-free cash lump sum – You can normally take up to 25% of the pension fund, or the Standard Lifetime Allowance, whichever is the lower, as a tax-free cash lump sum at retirement.  See Taxation for more information
  • Purchase a pension (annuity) – Purchasing a pension annuity means that you pay all or some of your pension fund to an insurance company of your choice, who will, in return, pay you a pension income for the rest of your life
  • Take an income (income drawdown) – With this option you have the freedom to choose, and change, the level of income you take.