10 weeks before

If you are a Standard Life customer, you will receive a letter advising you that your retirement date is approaching.

In this letter we detail the different options available to you. You can choose to leave your money invested which could give it the potential to grow. Upon retirement, you can normally take up to 25% out, tax-free. For example, if your fund is worth £60,000 you can take out £15,000 as a lump sum. You have the option to access your pension savings flexibly (also known as drawdown) through one-off or multiple lump sums and regular withdrawals. Or you can take out a guaranteed income (also known as an annuity) to provide you with an income for the rest of your life. With both flexible and guaranteed income, the payments you receive will be taxed as earned income. You can also choose a mix of these options to find a combination that's right for you.

Our Retirement section  or Retirement Guide (3MB) will provide you with more information on your retirement options. It's important to remember that your pension is invested and as with any investment the value of your pension can go down as well as up and may be worth less than what you paid in. If you choose the option of a guaranteed income, you should shop around different providers in order to find the deal that's right for you. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK also have an impact on tax treatment.

Related FAQs