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.
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.
Taking money out might mean a change in the tax you pay. You should also know that tax rules can change.
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
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.
By increasing your income or taking a lump sum there will be less to leave behind to a loved one.
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.
Use our calculator to see how taking money out of your pot can impact how long your money might last.
We can answer any questions you have, but we can’t give financial advice
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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.
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.