Take money now

We can help you make the best choice for you

You can take your pension in a number of ways. You can have a guaranteed income for life. You can have a flexible income. You can take it as one or more lump sums. Or you can combine these. It’s up to you and we’ll help you, whatever you choose.

Don’t forget to shop around

  • Other providers might offer you other options or a better deal. Don’t forget to shop around.

Here are your options

Guaranteed Income for Life (Annuity)

Guaranteed Income for Life (Annuity)

  • Take up to 25% as a tax-free lump sum.
  • Have a regular taxable income for the rest of your life.
  • If you have an illness or a health condition, you could get a higher income.
     

There are different ways to take a guaranteed income. We can help you with this.

You should shop around to find the best deal for you.

 

Understand Guaranteed Income for Life (Annuity)

Flexibly accessing your pension can affect what you put in

If you take money from a pension flexibly, the amount you (and those paying on your behalf, such as an employer) can pay into your defined contribution pensions each tax year without paying tax reduces.  This is known as the Money Purchase Annual Allowance (MPAA), which is currently £10,000 per tax year.

Flexible Income (Drawdown)

Flexible Income (Drawdown)

  • Take up to 25% as a tax-free lump sum now.
  • You need to invest the rest in an income drawdown plan. You can take it when you choose. When you do, it will be taxed as income and MPAA will apply.  If you take money from a pension flexibly, the amount you (and those paying on your behalf, such as an employer) can pay into your defined contribution pensions each tax year without paying tax reduces.  This is known as the Money Purchase Annual Allowance (MPAA), which is currently £10,000 per tax year.

 

Understand Flexible Income

Under take your pensions as one or more lump sums

Under take your pensions as one or more lump sums

  • For each amount you take, 25% is tax free.
  • The rest you take is taxed as income.
  • If you take money from a pension flexibly, the amount you (and those paying on your behalf, such as an employer) can pay into your defined contribution pensions each tax year without paying tax reduces.  This is known as the Money Purchase Annual Allowance (MPAA), which is currently £10,000 per tax year.


Understand taking lump sums

Have a combination of the above

Have a combination of the above

  • You can also choose more than one option.
  • You might want to get professional advice for this choice. We can help you find this. An adviser may charge for any advice given.
     

We support you

Defer it for now

Defer it for now

If you don’t need to take your pension savings yet, you can defer it for now. You can keep it invested and make a decision when you’re ready to retire.

Don't forget, we're here to help

Don't forget, we're here to help

If you have a Scottish Widows pension, you have our full support.

You can get free guidance, where we’ll explain to you what you have and what choices you can make.

Get in touch.

Or we can help you find a financial adviser. Advisers will normally charge for advice.

How we manage your tax

How we manage your tax

If you take money from a pension flexibly, the amount you (and those paying on your behalf, such as an employer) can pay into your defined contribution pensions each tax year without paying tax reduces.  This is known as the Money Purchase Annual Allowance (MPAA), which is currently £10,000 per tax year.

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