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Taking some money from your pension

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Some things to think about

  • 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.
  • The value of your investment can go down as well as up so you might not get back the amount you put in.

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. Tax rules can change and the impact of taxation (and any tax relief) depends on your circumstances.

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.

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

  • We always recommend you speak to your adviser before making any changes to your pensions and investments
  • If you don't have a financial adviser, please see the 'more information' section below 
Retirement income planner

Support with your pension

More information

Unbiased

Visit Unbiased to find an independent financial adviser in your area to help you in your future pension planning.

Unbiased
Pension Wise

We recommend you use Pension Wise, a free impartial guidance service from the government to help you understand your options at retirement. Call 0800 280 8880 to book a phone or face-to-face appointment or visit their webiste below.

Pension Wise
HMRC

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

HMRC
Speak to a financial adviser

We always recommend you speak to your financial adviser before changing your income or taking a lump sum. If you don’t already have a financial adviser, we can help. We offer a restricted advice service.

M&G Advice