Retirement options

Your retirement options

You have various options when it comes to taking money from your pension pot. You can choose one or a combination of these options, some of which will affect you for the rest of your life. For additional information on your retirement options you should visit Pension Wise from MoneyHelper, the government’s free impartial guidance service.

Use your pension pot to buy a guaranteed income for life

An annuity is a retirement product that turns your pension pot into an income that’s paid to you for the rest of your life.

Learn more about annuities >

Take your whole pension pot as a taxable cash lump sum

It’s possible to take all of your pension savings as a cash lump sum, but there can be serious tax implications if you do.

Learn more about taking your whole pot as cash >

Leave your money invested and make withdrawals when you need to

If you don’t need all of your pension pot right now, you can leave it invested and take money out when it suits you.

Learn more about a flexible retirement >

Not sure which is the best option for you?

Compare your options

Try our Retirement Planning Toolkit

Remember: you don’t have to take your retirement benefits with ReAssure. Always shop around before committing to any option as you may get a better deal elsewhere.

Features	Buy a guaranteed income for life	Take your whole pot as a cash lump sum	Access your pension flexibly
Can I take a tax-free lump sum?	You can take up to 25% of your pension as a tax-free lump-sum, and use the rest to buy an annuity	The first 25% of your pension pot will normally be tax-free	Up to 25%, at any time for any withdrawals from a personal pension (or a Flexible Pension Pot)
Guaranteed income?	Yes, for life. This is usually done by buying an annuity	No, if you take your pot as a lump sum it won’t provide you with an income	No, payments will not be guaranteed. You may have to rely on other forms of income if your pot runs out
Can I vary my regular income?	No, normally your regular income is set when buy an annuity	No, you won’t receive an income	Yes, you can change regular or make one-off withdrawals to suit your needs
Can my money still grow?	No, your money will have bought an income guaranteed for life	No, your money will no longer be invested	Yes, your money will remain invested in the funds that you’ve selected (values may go down as well as up)
Can I pay in?	No, once you’ve set up your annuity you can’t change it	No, once you’ve taken out all of your money your policy will be closed	Yes, you can make one-off or regular contributions that attract tax relief until age 75
What happens when I die?	Your payments will stop and nothing will be passed on. You can buy annuities that pay for a fixed period, even if you do die, or you can get one that will pay a reduced income to your spouse or another dependant for the rest of their life. If you take these options you’ll usually receive a lower income to begin with	Nothing – Your ReAssure policy will have ended	Any remaining funds can be paid to your nominated beneficiaries or dependents. This money may be taxed.
Can I change my mind after my 30 day cancellation period?	No. Most annuities allow you to cancel in the first 30 days. After this, you normally can’t change your mind.	No	Yes, once your Retirement Account is set up you can use it to buy an annuity, take the whole lot as a lump sum, or transfer to another provider, at any time
What are the tax implications?	Taxed as income like money earnt from a job	Taxed as income like money earnt from a job. Large lump-sums may mean you end up paying higher, or additional rate tax	Taxed as income like money earnt from a job. As withdrawals are flexible you can schedule your withdrawals to make the most of tax allowances

Explore your options

You can use our Retirement Planning Toolkit to understand more about your retirement options, and see how each one could look based on your own circumstances.

Try the Retirement Planning Toolkit

Getting help

ReAssure is unable to provide financial advice or make a personal recommendation, but we can provide you with factual information about your policy and your options.

However, there are places you can go for help.