Should I take my pension at 55?
We work out how much to take from 55, from which pot and in which tax year, with the tax on each choice.
We work out how much to take from 55, from which pot and in which tax year, with the tax on each choice.
From 55 you can take money from most pensions, rising to 57 on 6 April 2028. Normally 25% comes out free of tax and the rest is taxed as income in the year you take it, so the amount and the timing decide what you keep.
The advisers for this subject: Sunny Bharj and Tony Springer
gov.uk and the HMRC Pensions Tax Manual, checked 23 September 2026. 2026/27 rules.
The tax-free part is capped by the lump sum allowance of £268,275. Should I buy an annuity or use drawdown?
Pension Wise, the government's guidance service from MoneyHelper, offers free appointments to people aged 50 and over with a defined contribution pension. It sets out the options without recommending one.
Advice from us ends in a recommendation for your circumstances: how much to take, from which pot and in which tax year, with the tax on each choice in pounds.
A fee or a percentage of the amount invested or transferred. Ask for the charge in pounds before you proceed.
Read the answer →Hold it in cash while you decide. The estate settles the inheritance tax, and an ISA, a pension and gifts each have their own limits.
Read the answer →Open a personal pension or join Nest. Contributions get tax relief at your marginal rate, up to £60,000 or your earnings if lower.
Read the answer →Taking your tax-free cash on its own leaves your annual allowance at £60,000.
Yes. Your earnings and the taxable part of anything you take are added together for income tax that year, and taking taxable income cuts what you can pay into a pension with tax relief to £10,000 a year.
It depends how you take it. Taking an uncrystallised funds pension lump sum means a quarter of each payment is tax free. Taking tax free cash up front and then drawing income means the income is fully taxable.
The minimum pension age rises from 55 to 57 on 6 April 2028. Some people have a protected pension age, and ill health can allow earlier access.
On a large pot it can cost you more tax. Only a quarter is tax free and the rest is added to your income for the year, which can push part of it into a higher rate band.
Tell us what you need each year and we set the withdrawals against your tax band.
Independent Financial Adviser
Independent Financial Adviser
Your first call is with an Account Manager and is at no cost to you. Tell us what is on your mind: a pension you have lost track of, a fixed rate ending, a will you keep meaning to write.