Leaving your pension to grow

If you can afford to leave your pension invested you could get a higher retirement income, especially if you’re still working and contributing.

Why leave it for now?

Javascript must be enabled in your browser settings to watch this video

Is leaving my pension for now right for me?

If you have another source of income or want to support others after you’re gone then leaving your pension invested could be the right choice for you.

Leaving your pension for now lets you:

  • Stay flexible
    You can keep your options open. If you don’t need the money now you can leave your pot invested and take it later.
  • Top-up your pension pot
    By continuing to pay contributions into your pension. You’ll get tax relief on any payment you make and if you’re 55 or over you’ll be able to access your money any time.
  • Stay invested
    Your pot will have the opportunity to grow. You could benefit from potential future, tax-efficient growth. This isn’t guaranteed.
  • Support family
    You can pass on your remaining pot to anyone you choose, free of inheritance tax.
    • If you die before age 75, this will be completely tax free.
    • If you die after age 75 or older, they will be able to access the pension flexibly, at any age, subject to income tax.

What do I need to think about?

  • You’ll need another source of income
    If you choose to defer your pension, you’ll need to carry on working or have other sources of income. You won’t be able to enjoy your retirement income straight away.
  • Your income isn’t guaranteed
    You run the risk of investments performing poorly and your pot falling in value.

Tax rules and legislation can change. Any information given is based on our understanding of law and current HM Revenue & Customs practice, as at April 2016.

The information provided here should not be regarded as financial advice. If you are unsure you should speak to a financial adviser. There’s likely to be a cost for this.

What option is right for you?

explore your options image

Get a snapshot of your options with our pathfinder tool

How far will your pension go?

Quickly see what your pension can do for you

Get a free personalised report on your options

Compare retirement options:

 

Fixed income
(annuity)

Flexible income
(drawdown)

Leave it to grow

Take cash

Will I get a guaranteed income for life?

 

 

 

 

Can my money grow?

 

 

 

 

Can I access my money if I need to?

 

 

 

 

Access to impartial guidance

We recommend you seek appropriate guidance or advice before you make any decisions. An adviser may charge a fee for this. You can also get free impartial guidance over the phone or face to face with Pensionwise. Go to pensionwise.gov.uk or call 0800 138 3944. Make sure you understand all your retirement options by reading the Money Advice Service guide – Your pension - it’s time to choose

Pensionwise banner

Keep up-to date with the latest retirement news and expert opinion.

ACCOUNTS AND SERVICES

Explore our fixed income and flexible income options.

FAQS ON RETIREMENT

Take a look at pensions and retirement FAQs.

TAX IN RETIREMENT

Make sure you don’t end up paying more tax than you need to.

RETIREMENT ROADSHOWS

Attend a free event to learn more about preparing for retirement.

Were you able to find the information you were looking for on our site?Yes No

Please note: The survey won’t be used to respond to individual customer queries. Please refer to our Contact us page if you have a question.

Send I've got nothing else to say

Thank you for your comments.