Can You Take All Your Pension at Once?

VIDEO: AJ Bell's Tom Selby answers all your pension FAQs

Holly Black 22 September, 2021 | 10:05AM
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Tom Selby: Can you take all your pension savings out at once? I'm sure that's something that lots of people will be thinking about. It depends on the type of pension you have. So the state pension pays an income when you reach state pension age, and there's no mechanism to cash out that fund. So you just receive the income that you'd get from the state. Defined contribution pensions where your retirement pot is invested in things like stocks, shares and bonds can be accessed from age 55, with a quarter of the money available tax free, and then rest taxed in the same way as income. So once you reached age 55, you have total flexibility over how you spend your money. The age at which you can access your defined contribution pension is due to rise to 57 in 2028.

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Holly Black  is Senior Editor, Morningstar.co.uk