When you reach pension age, there are different ways you can access your pension benefits. You can buy an annuity which provides an income for life, withdraw a lump sum or use pension drawdown to have a flexible income. With pension drawdown, you can receive a direct income from your pension pot.
Moneybox offers four ways to access your pension:
Drawdown, where you can take tax-free cash and/or taxable income while keeping the remainder of your pension invested.
Uncrystallised Funds Pension Lump Sum (UFPLS), where each withdrawal consists of a tax-free element and a taxable element.
Small Pots Lump Sum, provided your pension meets the eligibility criteria.
Taking tax-free cash and using the remaining pension funds to purchase an annuity from a provider of your choice.
Each option has different features and tax implications, so it's important to consider which is most suitable for your circumstances.
Further details about these options can be found in our Key Features document.