So you’ve saved for years and have both a private pension & a state pension…your good!
Once you hit 55 you can start to take money out of your pension. The great thing is, if you need to take out a lump sum straight away, you can withdraw up to 25% of your money without paying any tax on it…yep tax-free!
With the rest of the money you pretty much have 3 options:
- Leave it invested in your pension
- Buy a financial product called an Annuity which pays you regular income until you die
- Buy a Flexible Income Drawdown product, this just allows you to keep your pension invested but anytime you want to take some of your money out, you can.
You can claim your state pension when you’re 66, this will give you around £129.20 a week.