6 key points about pensions tax relief
By International Adviser, 2 Oct 18
How the UK Government is encouraging people to save for their retirement
Annuity or drawdown?
There are three different options for getting an income from your pension pot.
You can choose to take all or some of it as cash, but an alternative is to buy an annuity, which gives you a guaranteed yearly income for a set period of time or until you die.
The amount you receive will depend on your age, the size of your pension pot, interest rates and, sometimes, your health.
You can also invest your pension money in a flexi-access drawdown option. This allows you to make withdrawals for up to five years.
All options are subject to income tax so its very important that you take financial advice to work out the best options for your situation.
