Taking some money from your pension

One of the benefits of your pension is that you can take some of your money as and when you need it or you can set up to take a regular amount, or a bit of both – the choice is yours.

But before you do anything you need to think about how long your money will last and if taking money out will affect any other income you get.

We always recommend you speak to your adviser before making any changes to your investment/pension.

Some things to think about

How long will your money last?

This depends mainly on how much money you take out and how your funds are performing.

Taking a higher income or a lump sum increases the risk of your fund running out sooner. So, it may not last as long as you, and your loved one, need it to.

How much tax will you pay?

Taking money out might mean a change in the tax you pay. Tax rules can change and the impact of taxation (and any tax relief) depends on your circumstances.

How much are you still paying into your plan?

Taking money out of your pension pot sometimes triggers a limit on how much can be paid into it in the future. Find out more about the  Money Purchase Annual Allowance

How your other benefits could be affected?

Taking money out could mean certain state benefits that are based on your income or savings could be reduced or stopped. This applies to benefits like housing benefit or income support and if you have any debts, the creditor may have rights to any cash you take.

Do you want to leave money to a loved one ?

By increasing your income or taking a lump sum there will be less to leave behind to a loved one.

What to do now

We always recommend you speak to your financial adviser before changing your income or taking a lump sum. If you don't have a financial adviser you can find one here.

Want to take money out

Use our calculator to see how taking money out of your pot can impact how long your money might last.

If you need help

We can answer any questions you have, but we can’t give financial advice

0808 234 2372.

We're here 9am - 5pm, Monday - Friday.

If you're calling from abroad +44 1786 448 844

Speak to a financial adviser

If you don’t already have a financial adviser, we can help. Book a no-obligation financial review with one of our advisers in your area.

We offer a restricted advice service.

Find out more

Where can I learn more?

Find a financial adviser

Find an independent financial adviser in your area to help you in your future pension planning.

Visit www.unbiased.co.uk and enter your postcode.

Pension Wise

We recommend you use Pension Wise, a free impartial guidance service from the government to help you understand your options at retirement.

Visit moneyhelper.org.uk/pensionwise or call 0800 280 8880 to book a phone or face-to-face appointment.


Visit the hmrc.gov.uk  to get information on tax rules and legislation which may affect you if you are saving, investing, or have a pension plan.