Taking your pension
Unlike some other pensions, Retirement Account offers a range of ways to take your pension when you retire.
Bear in mind that your circumstances can change and you may decide to defer your retirement which means you can leave your savings invested. When it comes to tax-free cash, the Governments tax rules may change too.
Your questions answered
You may already have a good idea how you want to take your pension. It’s important to go back to basics and think about your situation before deciding. The decision should be based on a number of things including your age and health, if you plan to stop working altogether or just reduce your hours, whether you’ve got financial dependents and if you’re looking for a fixed or flexible income.
You need to consider how much you think you might need to spend in retirement and also think about whether you plan on using any savings or assets you have outside of the pension to help to pay for these. You might be considering downsizing your home for example.
To help you understand what income you will have in retirement you can find out if your eligible for and how much you might receive as part of the Basic State Pension, you can find out more about this here. Do remember that you won’t be able to take your State Pension until you’re in your mid to late 60’s.
Check your state pension here.
Yes, you can pay into your pension even when you’ve started taking an income or taken some of it as a cash lump sum however you’ll only get tax relief on contributions of up to £4,000 a year*. This is known as the money purchase annual allowance.
*Please bear in mind tax rules may change in the future and may be different depending on where in the UK you are. Your own circumstances may also change, for instance the rate of tax you pay may alter.
If you’re in ill health you may be able to choose to take your pension benefits before age 55. If you are in serious ill health you may be able to take your whole pension pot as tax-free cash. Serious ill health means you have been diagnosed with less than 12 months to live.
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