Leave it for now

Continue to save and make a decision later.

How it works

If you’re not ready to take money from your pension, you can leave it invested. It’ll give you more time to pay into your pension and decide how you want to use it. Some pensions need you to make a decision before a certain age, so check with your provider.

Benefits

  • Value might grow
    Your pension stays invested, so it may grow.
  • More time to pay in
    Your savings might grow as you’ll be paying in for longer.
  • More time to choose
    Take the time to choose how you want to take your money.

Limitations

  • Value might go down
    It’s possible your pension’s value may go down.
  • Age restrictions
    From age 75, some pensions might restrict your contributions or limit the ways you can take your money.
  • Might lose out if you wait too long
    Some pension guarantees require that you take your money at certain times to keep your benefits.

Is it right for you?

This option is good for people who:

  • Don’t have enough to retire yet.
  • Don’t need an income yet or plan to continue working.
  • Don’t need their tax-free cash right away.

They might also be the type of person who:

  • Has enough time before retiring or turning 75 to make a decision.
  • Wants to keep saving towards their retirement income.

Things to think about:

  • Delaying your choice can have consequences if you wait too long.
  • Some pensions need you to make a decision before a certain age.
  • You might want to check that the retirement age you've chosen for your pension matches your current plans.

What else should you know?

Tax and future contributions

How your pension is taxed

There's no tax to pay until you take money from your pension.

Your tax treatment depends on your individual circumstances. Your circumstances and tax rules may change in the future. If you're unsure, please get in touch with HM Revenue & Customs (HMRC) or a tax adviser.

Future pension contributions

You can contribute to your pension as normal, until age 75 or until you take money from it.

Check your guarantees

Some older pensions have guarantees that apply when you take money at certain times.

If you retire earlier or later than your provider expects, these guarantees could change the amount you receive.

You can find more details about your guarantees in your Annual Benefits Statement.

What happens when you die

Money left in your pension after you die will be passed on to your chosen beneficiaries.

Right now, there's usually no inheritance tax to pay on pensions. And if you die before age 75, your beneficiaries may be able to withdraw the money tax free.

But from April 2027, the rules are changing and any money left in your pension when you die may be subject to inheritance tax.

There will be some exceptions, so you should check with HMRC to be sure.

Explore other pension options

Access your money flexibly

Get 25% tax-free cash and keep the rest invested to use as an income.

Explore flexible access

Take some of it as a lump sum

Receive a taxable sum where 25% is tax free.

Explore taking some

Take a guaranteed income

Get tax-free cash and a secure income for life.

Explore guaranteed income

Take all of it at once

Withdraw your full value, 25% tax free.

Explore taking it all