The summer budget of 2015 has given us more options as what to do with our pension pot than ever before. Here is a summary:
1. Lump sums:
You can now take as much as you like from pension in one go, but beware the taxman. The first 25% is tax free and many people take advantage of this benefit. You can also take several smaller lump sums over a period of time with 25% of these being tax free.
2. Taking an income
This used to mean selling your pension in return for a guaranteed income for life from an annuity and this is still an option. You can also get a guaranteed income whilst still keeping ownership of your pension using drawdowns. Or you can keep your money invested and take an income directly and flexibly from it using an income drawdown.
3. Waiting a bit
You do not have to take any money from your pension right now, of course. The way your pension is invested still matters and there several products available specifically designed for those looking to retire in just a few years.