A pension is a long-term investment. Its value can go down as well as up and could be worth less than was paid in. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK will also have an impact on tax treatment.

Discover your options

When you reach age 55 (rising to age 57 from 6 April 2028), you get to choose how to take your pension money. And there are three ways you can do it. We’re here to help you get familiar with your options.

You could choose a combination of two or even all three options.

And you don’t have to take your money when you reach 55. You can always choose to leave it where it is. To find out more, read our guide on leaving your money invested.


Compare your options

Option Will you get a guaranteed income for life? Does your remaining money stay invested? Can you access your money at any time? Can you pass on what’s left after you die?
Take a flexible income No Yes Yes Yes
Take one or more lump sums No Yes Yes Yes
Buy a guaranteed income for life (annuity) Yes No No No*
Leave your money invested for now No Yes Yes Yes

*Usually you can't pass on your guaranteed income for life (annuity), but you could add on options.
For example, you could choose to pay a dependant’s pension after you die, to keep paying the income for a guaranteed period or to include value protection, which provides a lump sum death benefit.

Find an option that suits you

Don’t worry if you’re not sure which option is right for you – we have some handy tools and resources to help.




Want to learn more?