Help & FAQs

What are my 'pension Freedoms'?

Under the Government’s 2015 ‘pension freedoms’. You can:

  • Leave your SIPP intact until you need to draw on it.
  • Use all or part of it to purchase a guaranteed income via an annuity.
  • Take up to 25% of your pension value tax efficiently and draw a regular income. You can do this while continuing to manage your investments; this is known as Flexi-Access.
  • Take lump sums as and when you need them with 25% off each lump sum free of income tax and the remainder taxed at your prevailing rate.
  • Take all your pension pot in one go with 25% free of income tax with the remainder taxed at your prevailing rate.
  • Mix and match from these options to create the ideal solution, taking into account other pensions, income or savings and the amount of income you need.
Submitted on 17th May 2019

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Risk Warning

The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Selftrade does not provide investment advice. If you are in any doubt as to the risk or suitability of an investment or product you should seek advice from an independent financial adviser.

The extent and value of any ISA tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change.

The extent and value of any SIPP tax advantages or benefits will vary according to the individual's circumstances. The levels and bases of taxation may also change. If your options change regarding an employer's pension scheme you may wish to review your financial situation. Once in a pension your money is only accessible, in general, from age 55.

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