Beginners’ Guides

When you retire – continued

Your retirement choices are likely to include:

• Use your pension pot to provide a taxable income for life,
• or take up to 25% of your pot as a tax-free lump sum, and use the rest to provide a taxable income,
• or use your pension pot to provide income (and tax-free lump sum) in stages. This is commonly referred to as ‘phased retirement’.

The tax treatment depends upon your individual circumstances and may be subject to change in the future. Tax rules can change.