Remember, if you die before the age of 75, any money left in your pension pot can be passed onto your beneficiaries usually tax free.
If you die after 75 – money taken out is added to the beneficiaries' other income and is subject to Income Tax.
Here are some of your choices to consider, but before making your decision we recommend you take financial advice:
Take a tax-free lump sum from your pension pot and keep the remainder invested
Move into flexi-access drawdown and take a taxable income by withdrawing money on a regular or ad hoc basis
Buy an annuity – this is an income for life
Take all your pension pot as one lump sum, 25% will be tax-free and the rest taxed as income
Take regular or ad hoc lump sums – 25% of each payment is tax-free and 75% is taxable
Or you can mix your options
It can be daunting deciding what to do with your pension pot, but it’s an important step to securing your financial future and our Financial Advisers can help you review all your options and help you make the right choices.