Taking your benefits

You can take your DC pension pot anytime from age 55 up to 75 in any way you like.

What can you do with your DC pension pot?

You can take your DC pension pot anytime from age 55 to 75 in any way you like.

What you do will depend on your personal circumstances.

Currently, you can take up to 25% of your DC pot savings (up to the LTA - see below) as a tax-free cash sum. When you're close to the age you've chosen to take your DC pension pot, you'll get details of your options.

There is a limit on the total value of retirement benefits you can build up tax efficiently during your working life - this is known as the Lifetime Allowance (LTA) and for the tax year 2017/18 the limit is £1m. If you think you might be affected by this, there's more information on the Know You website.

What are my other options?

Whether or not you decide to stop working any time after age 55 is up to you and so is what you do with your DC pension pot.

  • You can use some or all of your DC pension pot to buy an income
  • You can 'cash out' all of your DC pension pot in one go
  • You can 'drawdown' income but to do this you'll need to transfer your DC pension pot out of the Scheme to a provider offering a draw down facility.

If you want to know more about your options, go to the DC member guide (4.6MB, PDF).

What about my State pension?

Your State pension will be paid on top of your DC benefits and any you've got elsewhere.

From April 2016 a new flat rate, single tier, State pension is being introduced.

The State Pension age is due to go up to 66 by 2020 for men and women, and to 67 by 2028. Eventually it will increase to age 68 for those born on or after 6 April 1978.

To find out what you might get go to gov.uk.