Your retirement options – watch our 3-minute video

Get a quick overview of all your available options in just 3 minutes. Then you can explore your options with confidence.

Explore your options

Here are your options at a glance

Currently, you can use your pension savings to buy a guaranteed regular income (an annuity), take it a bit at a time (drawdown), take it all as cash, or mix and match. Whichever option(s) you choose, you can take up to 25% of your pension savings as a tax-free cash lump sum.

We’ll colour code these options the same way throughout the site so you can navigate the site easily.

Mix-and-match your options

Should you wish to, you can mix-and-match from the options above.

For example, you can take some cash up front, buy an income for life to cover the basics and draw down the rest. It’s entirely your choice.

You should to speak to an Authorised Financial Adviser if you are considering this.

Play with the Illustrator

Use the Illustrator to explore some of your options based on your savings.

(A) regular income for life

Buy a regular income from an insurance company

  • A guaranteed income for the rest of your life, called an Annuity
  • Choose the level of benefits and cover you need to match your priorities
  • A possible higher income if you have health issues
  • You’ll need to shop around to get the best deal.

A bit more detail…

By buying an annuity, you’re able to tailor a regular, guaranteed retirement income to suit your circumstances.

For example, you’ll be able to decide whether you want to include an income for your spouse or civil partner after you die and whether you want your income to increase over time or remain level. You may also be able to get a higher income if you are in poor health or are a smoker.

Learn more - read the factsheet

(B)it at a time

Invest your savings and withdraw cash as and when you need it

  • Take your money as and when you need it, called Drawdown
  • If you die before 75, savings can be passed to your beneficiaries, currently tax free
  • You’ll need to make sure your money lasts as long as you need it to
  • No guaranteed income for your retirement and ongoing investment charges apply.

A bit more detail…

By investing your pension savings into a Drawdown arrangement you’ll have the flexibility to withdraw taxable cash as and when you need it throughout retirement.

However, you’ll be responsible for managing your savings, including choosing which funds to invest in.

Learn more - read the factsheet

(C)ash out

Take all your pension savings as a cash lump sum

  • Take all your benefits as a Cash lump sum
  • You’ll be taxed on 75% of the amount you take, possibly at a higher level than you’re used to if you take it all at once
  • No guaranteed income for your retirement.

A bit more detail…

By taking your retirement savings as cash you’ll have access to it all in one or two lump sums.

Up to 25% of your retirement savings may be paid tax free, but you’ll pay tax on the remainder – potentially pushing you into a higher tax bracket as your income is not spread out.

You will be responsible for making your money last.

Learn more - read the factsheet

Factsheets

If you want to really dig in to the detail about each of the options available, then why not have a look at our factsheets. We’ll show how your priorities could line up against each of the options available, how tax plays a part and what other additional options may be available for each.

(A) regular income for life

Buy a regular income from an insurance company

View the factsheet

(B)it at a time

Invest your pension savings and withdraw cash as and when you need it

View the factsheet

(C)ash out

Take all your pension savings as a cash lump sum

View the factsheet

Compare your options side-by-side

(A) regular income for life (annuity) (B)it at a time (drawdown) (C)ash out
* Comes at the cost of a reduction in how much money you get each month to start with
** This depends on if your investments perform well and how much risk you choose to take
Option:The reassurance of a regular income for life (A) regular income for life (annuity)Yes (B)it at a time (drawdown)No (C)ash outNo
Option:Pension increases to protect against inflation (A) regular income for life (annuity)? Optional* (B)it at a time (drawdown)? Optional** (C)ash outNo
Option:A pension for my spouse / partner on my death (A) regular income for life (annuity)? Optional* (B)it at a time (drawdown)You can leave any leftover money to your spouse/ partner (C)ash outYou can leave any leftover money to your spouse/ partner
Option:Leaving an inheritance (A) regular income for life (annuity)No (B)it at a time (drawdown)Yes, if you have any money left (C)ash outYes, if you have any money left
Option:Something easy to manage (A) regular income for life (annuity)Yes, after you’ve shopped around for the right annuity (B)it at a time (drawdown)No, you need to manage money & investments (C)ash outYes, if you don’t invest the money
Option:Money to use now (A) regular income for life (annuity)Yes, up to 25% of your pension savings tax-free (B)it at a time (drawdown)As much as you like (some of which is subject to tax) (C)ash outAll of it (some of which is subject to tax)
Option:The flexibility to change my income when I like / need (A) regular income for life (annuity)No (B)it at a time (drawdown)Yes (C)ash outNo, it’s a single cash lump sum
Option:The ability to invest my money myself
(investment charges may apply)		 (A) regular income for life (annuity)No (B)it at a time (drawdown)Yes, through your drawdown provider (C)ash outYes, through self investment
Option:Suitable if I expect to live a long time (A) regular income for life (annuity)Yes, a guaranteed income for the rest of your life (B)it at a time (drawdown) Possibly - you're in control of how long it lasts (C)ash out Unlikely – if your HRP savings are your only source of retirement income