You have a number of options for how you can use your Pension Pot, although you would have to transfer out of the Plan to access some of them.
Pension
You could use your Pension Pot to purchase a monthly income for the rest of your life.
You can also take 25% of your Pension Pot as a tax-free lump sum and use the rest to buy a pension. We will tell you more when you get closer to retirement.
See the
MP03 section booklet or the
AE Section booklet for full details on your retirement options.
The options you could access if you transferred your Pension Pot out of the Plan to another provider include:
Single lump sum
You could take all your Pension Pot as a one-off lump sum. 25% of this would be tax-free and the rest would be taxed as income. Please consider this option carefully, especially if you have a large amount of pension savings.
Flexible drawdown
This option allows you to dip into your Pension Pot and withdraw smaller lump sums when you need them. This means that you could benefit from further investment growth. You would still get 25% of your Pension Pot tax-free.
Financial guidance and advice
Pension Wise is a free and impartial guidance service set up by the government, which aims to help you understand your choices and how they work. You can find out more on the Pension Wise website (
www.pensionwise.gov.uk). You can also visit the Money Advice Service at
www.moneyadviceservice.org.uk to find an independent financial adviser in your area.