Accessing Pensions

From age 55 (rising to 57 from April 2028) you can usually start taking money from a personal or workplace pension. How you do it matters. The choices you make affect how much tax you pay, how long your savings last and what is left for your family.

Your options at retirement

If you have a defined contribution pension, you can normally choose from:

• Tax-free cash – usually up to 25% of your pension (subject to an overall limit), taken all at once or in stages.
• Flexi-access drawdown – keep your pension invested and draw an income as and when you need it.
• An annuity – exchange some or all of your pension for a guaranteed income, for life or for a fixed term.
• Lump sums – take one-off withdrawals, with a quarter of each usually tax-free.

Many of my clients use a combination – for example, a guaranteed income to cover the essential bills, with drawdown alongside it for flexibility.

How I help

I start by understanding what you want your retirement to look like and the income you will need to pay for it. I then bring together your pensions, savings, State Pension and any other income, and use cashflow modelling to show how long your money is likely to last under different scenarios.

• Working out how much you can sensibly take each year
• Keeping the income tax you pay as low as possible
• Choosing the right balance between drawdown and guaranteed income
• Planning what happens to your pension when you die, including the inheritance tax changes that apply from April 2027
• Regular reviews, so your plan keeps pace with markets and your circumstances

Local advice in Stirling

I meet clients at my office at Castle Business Park in Stirling or by video call, and work with people across Stirling, Bridge of Allan, Dunblane and Central Scotland. As a Chartered Financial Planner, I will explain your options in plain English and set out my fees clearly before any work begins.

Please note: I do not advise on defined benefit (final salary) pension schemes.