Once you turn 55, you’ll need to decide:
You can start taking your TPT savings any time once you’ve reached age 55. Remember though, unless you have other savings or income, this money will need to last for the rest of your life.
There are now more ways for you to use your retirement savings and you can choose from one, or a combination of, the following options:
Whichever option (or options) you choose, you’ll be able to take 25% of the total value of your savings as a tax-free lump sum. This is subject to a maximum amount across all pension schemes which is currently £268,275 for most people but may vary for individuals with certain tax protections.
You will still be liable for income tax on the remaining 75% of your retirement savings, regardless of how you wish to take it.
When you’re looking to take your savings, you’ll probably have lots of ideas on how you’d like to spend the money you’ve saved. But, if you have no immediate plans for the money, and plan to leave it in your bank account, is it worth taking it?
A lot of people question whether they should take the option of the tax-free lump sum, and the timing of it. Some of the reasons they consider delaying it are:
Remember: When you choose to access your savings from TPT, you’ll be provided with information about your options.
Pension Wise is a free impartial guidance service offered by the Government. Click here to find out more and the types of support they can offer you.
Alternatively, when it comes to making big decisions or understanding your options, it can help to talk about your pension and your options as you approach retirement with a financial adviser.
You can find out more about sources of guidance and advice here.
Other retirement options are available, you can click here to find out more. When you're reviewing your retirement options, you’ll need to read our Risk & Warnings page.
If you haven't registered for your Retirement Savings Account yet, click here to find out how you can do it