How can you take your pension savings?

Choosing the right retirement income for you

As you get closer to retirement, taking time to understand your options can help you make more informed decisions about your future income.

What’s right for you will depend on things like the income you need, how long you want your money to last, and whether you’re comfortable keeping some, or all, of your savings invested.

There are three main ways to take your pension savings:

¹ You can currently take up to 25% of your pension savings as tax-free cash. This is based on our understanding of current taxation law and HMRC practice, which may change.

You can choose the option that works best for you, or combine different options if that suits your needs. In most cases, you’ll also have the flexibility to change how you take your income as your circumstances change in retirement.

Find out more by watching our short video: What are my options for taking my money?

If you want to understand how your lifestyle fund has been invested in the run-up to retirement, visit our What is a lifetyle fund? page.

Time to make a plan

Each retirement income option works in a different way. Understanding what this means can help you feel more confident about your decision. For example:

• If you want a flexible income, you’ll need to think about how your money is invested and how much you take over time.
• If you want an annuity, you’ll need to choose a provider and the type of annuity that suits your needs. We don't offer annuities, but they’re available from other providers.
• If you want to take savings as cash, it’s important to understand the tax you'll pay and the money you’ll have left for retirement.

Before making any decisions, we recommend talking to a financial adviser. There’s usually a charge for this service. If you don’t have an adviser, visit our Further guidance and help page for information on finding one in your area.

While we can’t provide financial advice, our free Aegon Assist service can help you understand your retirement options and make informed decisions as you plan for retirement.