Retirement planning

Can I access my pension savings early?

Your pension savings are locked in until you reach age 55 (increasing to age 57 from 6 April 2028). It may be possible for you to access your pension savings before then if your health means you can no longer carry on working.

What happens when I'm ready to take my pension savings?

We'll send you a letter before your chosen pension age. We'll explain your options and then, when you're ready, you can decide what you want to do.

What happens if I die before I start taking my pension savings?

Your pension can provide support to your loved ones if you die before taking your savings.

Income Tax does not apply if death occurs before age 75 and beneficiaries:

- Withdraw funds within two years of notifying the pension scheme about your death, or from the date the scheme was expected to know or could reasonably have been expected to know.
- Receive income from an annuity set up after 6 April 2015.
- Access funds from a drawdown pot, as long as the pension was first accessed after 6 April 2015.
- Do not take lump sums exceeding the lump sum and death benefit allowance (LSDBA).

How will my income be taxed?

Normally 25% of your pension savings will be tax-free and the remaining 75% is taxable.

HM Revenue and Customs (HMRC) calculate the tax you need to pay and tell us how much to take off before anything is paid to you.

Find out more about how much tax you may need to pay.

Once I've started to take my pension, can I change the amount I receive each month?

You might be able to if you've chosen to access your pension flexibly (also known as pension drawdown). You can't usually change your mind once you've bought a secure income, also known as a pension annuity. We recommend you speak to a financial adviser about your options.

Can I have a job even though I'm taking my pension?

You can work for as long as you like. You’ll still be taxed on the money you earn, whether that’s from your pension or your job, and you should look into this carefully.

Here's information about how tax affects your pension.