There are 5 retirement options you can choose from:-
- Option 1 – Leave your pension pot untouched for now and take the money later.
It’s up to you when you take your money; you might have reached the normal retirement date under the scheme or got a pack from your pension provider but that doesn’t mean you have to take the money now. If you do not take your money, you should check the investments and charges under the contract.
- Option 2 – Get a guaranteed income (annuity)
You can use your whole or part of your pension pot to buy an annuity. It typically gives you a regular and guaranteed income. There are different types of annuity available.
- Option 3 – Take money flexibly from your pension pot (drawdown)
There are currently two ways you can do this; you can always take a 25% tax free cash sum and you may take the balance as a regular income (flexi-access drawdown) or take ad hoc cash sums (uncrystallised funds pension lump sum)
- Option 4 – Cash in your whole pot in one go
You can do this but there are certain things you need to think about. You have to consider how much tax you pay on the amount your take out and you have to think about what you’ll live on in retirement.
- Option 5 – Mix your options
You don’t have to choose one option you can mix them over time or over your total pot.