Ready to access your pension? You now can with PlanViewer

Getting to the point where you can access your pension is a big moment. After years of saving, you finally have options.

From age 55 (rising to 57 from 2028), you can start taking money from your pension. Before you dive straight in, it’s worth taking a moment first. What you decide now can have a big impact on your future, and it’s not something you can easily undo.

So, before you make decisions that you can’t reverse, take a bit of time to understand how it all works and what your options are. Think about what you need now, and what you might need in the future too.

And when you feel ready, the good news is you can do it all simply and securely through PlanViewer.

Tax-free cash – what you need to know

Most workplace pensions allow you to take up to 25% of your savings tax-free. As of April 2024, this is capped at £268,275 (the lump sum allowance).

A common misconception is you have to take this all at once … this isn’t the case. You can usually take it in stages, leaving the rest of your pension invested until you need it.

Before taking money, it’s worth thinking about what you actually need and when. Ask yourself:

• Do you need a lump sum now, or would a more flexible income suit you better?
• Do you want to keep part of your pension invested so it can continue to grow?
• How long will your savings need to last?

While it can be tempting to take the full tax-free amount straight away, many people choose not to. Research shows that one in five (21%) people who withdrew a cash lump sum from their pension pot did so as soon as they turned 55 – meaning the majority (around four in five) chose not to.¹

Consider your options

Taking tax-free cash is not your only option. There are several ways you can take money from your pension, depending on your needs and plans:

• Take your tax-free cash only – you can withdraw up to 25% (within your available allowances) as a lump sum and leave the rest invested for later.
• Take less than the tax-free allowance – you don’t have to take all your tax-free cash at once, you can always take some at a later point. Spreading withdrawals may give your remaining pension more time to grow.
• Take more than the tax-free allowance – you can take as much out of your pension savings as you want, all the way to its total value. But anything over the tax-free allowance will be subject to tax.
• Take a lump sum (UFPLS) – an Uncrystallised Funds Pension Lump Sum allows you to take a single payment where typically 25% is tax-free and the rest is taxed (within your available allowances). This can act as an alternative way to stagger tax-free withdrawals.

Read more about withdrawing money from your pension.

What happens when you start taking money

When you take your 25% tax-free, the remaining 75% moves into ‘flexi–access drawdown’. That money stays invested and can be withdrawn at a later point but will be subject to tax when you withdraw.

Taking money from your pension flexibly may trigger the Money Purchase Annual Allowance (MPAA). This reduces how much you can contribute to your pension in the future. You can find more information on the MPAA here.

And when you’re ready… you can take that next step confidently with PlanViewer

When the time feels right, getting started is straightforward. PlanViewer guides you through each step, so you can move forward with clarity and confidence – from exploring your options to securely confirming your withdrawal.

1. Review your Retirement Pack

Before you begin, you need to really know what you’re dealing with. This is why you’re asked to review your Retirement Pack first. It includes important information about your options and benefits.

You can find it:

• Under ‘Plan information’ → ‘View your documents’.
• Or request a new one via ‘Plan your retirement income’ in the ‘Planning my retirement’ menu.

If you request a new pack, it will usually be available online within 5 minutes or arrive by post within 10 working days.

It’s also worth checking that your personal details are up to date in ‘My profile’.

2. Start taking your money

To request a withdrawal from the PlanViewer homepage, click ‘Request a withdrawal’ at the bottom of the page. From there you can:

• Choose to take a lump sum – either as a tax-free payment (if available), an Uncrystallised Funds Pension Lump Sum (UFPLS), where part is taxable, or a taxable payment.
• Or set up a regular income – this is available if you’re in flexi–access drawdown, allowing you to flexibly withdraw money as needed while keeping the rest of your pension invested.

3. Let PlanViewer do the heavy lifting

When you’ve decided what’s right for you, PlanViewer makes it straightforward to take money from your pension and manage your withdrawals in one place. At the touch of a button, you can:

• Choose how much you’d like to take and how to take it
• See how your decisions may affect your remaining pension
• Decide how any remaining funds are invested

You’ll have clear guidance throughout, with links to more information if you need it.

Once submitted, your request is processed securely, and if you set up regular income, you can adjust your payments at any time.

We’re here for you

If you have any questions or would prefer support, you can contact our Workplace Investing Service Centre team on 0800 368 6868. They can help you with the process or answer any questions about your account. Our lines are open Monday to Friday, 8:30am to 5:30pm (UK time).

If you need more help

The Government’s Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online at https://www.moneyhelper.org.uk/en or over the telephone on 0800 138 3944.

Source:

¹ Research conducted, on behalf of Legal & General, by Opinium between 3rd–9th December 2024, among 3,000 UK over 50s.