If you are aged 55 or over, pension freedoms give you more control over your retirement savings.
Since 2015, anyone with a Defined Contribution pension can take money out in several ways, as a lump sum, regular income or even the whole pot at once.
Despite this, research by financial analytics company AKG shows that only 27 per cent of people fully understand how it all works.
Take a tax-free lump sum
From age 55 or age 57 from April 2028, you can take up to 25 per cent of your pension pot as a tax-free lump sum up to £268,275.
This can be used for things like paying off debts, helping family, or investing elsewhere.
The rest stays invested or can be drawn as income over time, which is then taxed like regular income.
Flexibility brings responsibility
Being able to access your pension early is useful, but it does need careful planning.
Taking too much too soon could leave you short later in life, especially if markets dip or you live longer than expected.
In the same AKG study, 45 per cent of savers said they were worried about exactly this.
The risks of going it alone
Even with big decisions like this, only 29 per cent of people would speak to a financial adviser, and just 20 per cent are willing to pay for advice, which is concerning.
These choices are often permanent and can affect your financial future.
Plan with purpose
Everyone’s pension is different. Our qualified advisers can help you work out how much to take and when it is best to take it.