Can I withdraw my money at any time?
No. Once invested in a pension you cannot normally access the money until age 55. The minimum age will rise to 57 in 2028 and then in line with increases in the state pension age, remaining 10 years below (for example if the state pension age rises to 68, the minimum retirement age will rise to 58).
When you withdraw money from your pension, normally up to 25% is tax free and the rest taxed as income.
There is also no obligation to withdraw money from a pension. You may be able to leave your pension invested, never draw an income from it and pass it on to your heirs.
Like all rules, these may change in the future. The exact treatment of any benefits from your pension will depend on your circumstances.
To find out more about the pension freedoms and the pros and cons of the options, download our free Options at Retirement Guide below.
Important information - The information on our website is not personal advice but we can offer advice if specifically requested. What you do with your pension is an important decision, which could be irreversible. Drawdown is a more complex option than an annuity. Make sure you understand your options and check they are suitable for your circumstances: take appropriate advice or guidance if you are unsure. The Government's free Pension Wise service can help. It provides impartial guidance face-to-face, online or by phone - more on Pension Wise.