Drawing your pension

Individuals approaching retirement will have a number of decisions to make regarding how they draw an income from their pension plan.

You may need to take into consideration your spouse and/or dependants as well as your state of health.

In recent years Government have introduced various options for people to consider prior to their chosen retirement age - we recommend that you seek independent advice before making a final decision. 

Annuities

The most common way of drawing a pension is still to purchase an annuity from the funds held within your pension plan which convert your savings into a pension payable for life.

You will have the option of a tax-free lump sum which is normally 25% of the value of your pension funds

More recently Government have introduced an open market option facility for individuals to choose the most suitable annuity to meet their needs.

Annuity rates change regularly so the annuity provider you ultimately select may well be different from the company who holds your pension savings.

The PIPS Management Committee recommends that you seek independent advice prior to drawing your pension - we can help just call our freephone 0800 132100.