Taking benefits
A pension plan is a tax-efficient way to save for retirement. An individual can take their benefits, when they reach a certain age, even if they are still working. The options on how the benefits can be provided depends on the type of pension plan being used to provide the benefits.
The following article explains the range of options possible under current legislation, though this may be different to what is offered by a specific pension plan.
Key facts
- The normal minimum pension age is 55.
- On 6 April 2028 the normal minimum pension age will increase to 57.
- It is possible in certain circumstances to take benefits before age 55.
- It may be possible, depending on the type of plan, to phase benefits.
- Income from a pension is taxed as earned income.
- Income can be paid in one or a combination of ways:
- secured pension
- income drawdown
- partial uncrystallised funds pension lump sum
Disclaimer
The information provided is based on our current understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. Also it may not reflect the options available under a specific product which may not be as wide as legislations and regulations allow.
All references to taxation are based on our understanding of current taxation law and practice and may be affected by future changes in legislation and the individual circumstances of the investor.