Retirement income
Are you over age 55 and thinking about taking money out of your pension? We can help you access your savings.
The place to come when you're nearing retirement
Flexible income without advice
Access tax-free cash, take an income when you need it, and keep the rest invested so it has a chance to grow ahead of inflation.
Better ways to access your savings
We can recommend how to use your pension and savings efficiently, potentially making you thousands of pounds better off in retirement.
Learn more about your retirement income options
You can start withdrawing your pension savings from age 55. This will increase to 57 years old from April 2028.
There are different ways to turn your savings into an income. With us you can:
- access your defined contribution pension savings through pension drawdown, which means you can take an income or a lump sum if and when you need it, while keeping your savings invested.
- take money from your ISA or General Investment Account.
Or you might choose a combination of these.
Managing your pension savings and retirement income for life can be complicated. It’s an important decision, so if you’re unsure what to do, we offer an affordable retirement advice service. We'll support you from when you start accessing your savings, all the way through retirement as your circumstances evolve.
Just like earned income, most income you receive in retirement is subject to tax (including your State Pension). So keeping an eye on how much income you receive each year is important – especially if you’re on the cusp of moving into the next income tax bracket. And keep in mind that pension and tax rules may change in the future.
From age 55 (rising to 57 from April 2028), you can normally withdraw up to 25% of your pension value tax free, up to a maximum of £268,275. (This maximum limit may be higher if you have protections affecting tax-free cash. You might have this protection if you’d previously had a higher entitlement of tax-free cash.) The remaining 75% will be taxed at the usual rate, depending on your income level.
While it’s tempting to take a cash lump sum, this decision shouldn’t be taken lightly. As a customer of ours, you can log in and use Early Pension Cash and find out how much tax you might pay if you withdraw cash from your pension. It can also help you sense-check the longer-term impact of taking money now versus keeping it for later.
Taking cash from you pension is a decision you can’t reverse. So it’s important to make sure you’re fully informed. If you’re unsure, please contact our Specialists who will be happy to discuss your options.
Pension and tax rules may change in the future.
Six reasons to take financial advice when you retire
With Destination Retirement you can take regulated financial advice or go it alone. Here's why we think retirement is a good time to get help.
- Consider all your savings and sources of income, not just your pension.
- You could have tens of thousands more to spend in retirement.
- Look ahead to help prevent running out of money, or spending too little!
- Expert recommendation of the right investment for your needs.
- All the paperwork is done for you.
- Our Retirement Specialists ensure your income arrives in your bank account as planned.
Our service meets the high standards of regulated financial advice. You’ll stay in control throughout, with our team on hand to support you every step of the way.
What would you like to do next?
Speak to a Retirement Specialist
We're here to help if you have any questions or are struggling to get started. There’s no obligation – just free, practical help.
Looking for impartial guidance?
If you’re age 50 or above you can get free guidance from Pension Wise - a government-backed service.