Retirement options

When you reach age 55, you'll be able to access your retirement savings - even if you’re still working. So whenever the time feels right for you, you'll find three main ways to enjoy the money you've saved.

When you reach age 55, you will be able to access your retirement savings, even if you’re still working.

So whenever the time feels right for you, you’ll find three main ways to enjoy the money you’ve saved.

Option one – take it all as cash. You can have all your retirement savings paid in one lump sum; however, if you’re planning to use this money to live on, you’ll need to make sure it lasts for as long as you need it to. You may also be able to take some smaller cash payments, and spread them over a number of years. Either way, you should bear in mind the more cash you take out of your plan, the more you may end up giving to the tax man.

Option two – get flexible access to your savings. If you want more control over the money you’ve saved, you can keep it invested in your plan while you gradually take the income you need. As your money stays invested, it still has time to grow, but there’s a risk if your investments don’t do well or if you live longer than expected. Your savings could run out earlier than you’d like.

Option three – buy a secure income. If you’re worried about your money running out, you can give your savings to an insurance company, and in return, they’ll pay you a guaranteed, regular income for the rest of your life. Before going down this route, you’ll need to be sure it suits your needs, because once things are up and running you won’t be able to change your mind.

You can combine any of your three options, and whatever you decide to do, you can usually take up to a quarter of your retirement savings completely tax free. Of course, there’s no rush to do anything. You can put things off until whenever you’re ready. To find out more about your retirement options, talk to your financial adviser, or visit www.royallondon.com/retirement.

Your options explained

When you come to access your retirement savings, you can choose one or a combination of these options. 

Secure income

Enjoy a guaranteed regular income for the rest of your life.

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Flexible access

Take the income you need, when you need it.

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Cash payment

Have all your savings paid as a cash lump sum.

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Not ready to decide?

If you don’t feel ready to access your retirement savings, that’s ok. You can leave your money invested – and give it more potential to grow.

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How your options compare

* You may be able to take more than 25% if you have protected tax-free cash. A financial adviser could help you understand whether this applies to you.
Your options Secure income Flexible access Take cash
Can provide a regular income? Yes Yes No
Is my income guaranteed for the rest of my life? Yes No No
Can I change how much money I receive? No Yes Yes
Could my money run out later in retirement? No Yes Yes
Can I do something different with my savings in later years? No Yes Yes
Can I take some tax-free cash? Usually up to 25% of your pension pot*  Usually up to 25% of your pension pot* 25% of your pension pot 
Find out more  Secure income Flexible access Take cash

Explore your options

Before deciding what to do with your retirement savings, it's a good idea to take some time to fully understand all your options.

Download our guide to your retirement options

Find the support you need

You've got some big decisions ahead - and no doubt you'll have some questions. 
The good news is, there's plenty of support available.

Find tailored advice that's right for you

Find a financial adviser

Access free support from the government

Pension Wise

Use our retirement planner tool

Retirement planner

Your plan online

Access your plan details with our secure online service. It’s really simple to use and you’ll be up and running in no time.

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