Taking money from your pension savings
How to take tax-free cash, lump sums or regular income
Important information: the value of investments and the income from them, can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028). Before transferring a pension, compare all the benefits, charges and features and always seek advice if you are unsure.
Withdrawing pension savings - your options
If you're 55 and over and ready to start withdrawing money from your Self-Invested Personal Pension (SIPP) with Fidelity, we'll help you through the process online or by phone.
Through pension drawdown you can take tax-free cash, lump sums and regular income, while the rest of your pension savings remain invested.
If your pension is with another provider and you want to start income drawdown with Fidelity, you can transfer to Fidelity's SIPP, even if you've already started drawdown.
Important information - it’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what else you should consider before transferring, please read our transfer factsheet. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.
Before you get started
Before you take money from your pension, you may want to take some time to think about how you'd like to take it and the level of guidance you'd like along the way. We'll always go the extra mile to make understanding pensions as easy as possible, but they can be complex. So it's wise to take your time to understand what works best for you.
- Understand your options
Ensure you've considered all your pension options, including pension drawdown. - Essential reading
Please read our essential information to help you make your choice. Taking care of your retirement money and investing. - Call our retirement specialists
Need help with pension drawdown? Our retirement specialists offer free guidance and personalised paid for advice services. We’re available Monday to Friday from 9am to 5pm. Call 0800 368 6882. - Pension Wise
The government's Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access their guidance online at Pension Wise or over the telephone on 0800 011 3797.
How to start
You'll find information below on withdrawing your pension savings, depending on your needs and criteria.
| Apply to take tax-free cash or lump sums | Set up or change your income in retirement | Apply with Fidelity's retirement service |
|---|---|---|
|
If you still have tax-free cash available from your pension you can take all or some of it online. If you'd like to take lump sums instead, where 25% of each withdrawal is tax free and the rest taxed as earnings, you can also do this online. You need to:
|
If you want to take a taxable income or lump sum from your existing drawdown account you can do this online. Please read the Taking care of your retirement money before amending your income. Log in to your online account, select ‘Manage investments’ from the top of the page and then ‘Move or withdraw cash’. You'll need:
If you've applied for a one-off income payment - we'll use your available cash and/or sell any investments you hold proportionately to make the payment into your bank account. If there's sufficient cash available the payment will take 8 working days. If we have to sell any investments you'll receive the payment within 13 working days. If you're setting up regular income payments - we'll create your regular drawdown income plan and you'll receive confirmation in writing, including when the first payment will be made. |
There may be instances where you won't be able to complete your task online and will need to speak to Fidelity's retirement service. Phone lines are open, Monday to Friday 8:30am - 5:30pm and Saturday 9am - 12:30 pm. These instances include:
|
Important information for when you start taking taxable money from your pension pot: If you want to continue saving into your pension after you start taking taxable money from it, the total amount you can contribute and receive tax relief on will be reduced to £10,000 a year under the money purchase annual allowance (MPAA).
Apply to take tax-free cash or lump sums online
What you'll be asked
You’ll be asked a series of questions to work out if you’re eligible to withdraw your pension savings online, including:
- If you've taken any pension benefits previously or are likely to exceed your lump sum allowance.
- Whether you have pension protection or a transitional tax-free amount certificate - as you may have a higher lump sum allowance than standard. Read more about the lump sum allowance
- Whether you have sought guidance or advice on your options at retirement, either with a regulated financial adviser at your own cost or with the government's Pension Wise service.
- Once you're in drawdown, whether you want to change where your investments are held.
What you need to consider
We’ll provide you with additional information to consider throughout the online application process. But before you begin, it helps to understand the two different ways you can withdraw your pension - Drawdown or Uncrystallised Funds Pension Lump Sum (UFPLS). You’ll need to know which route you want to take.
What happens once I've applied
Once we've received your withdrawal request:
- We usually pay the amount within eight working days if you've sufficient cash. If there's a shortfall, we'll use the cash available and cover the rest proportionately from your investments. In this case the payment may take up to 13 working days.
- If you've added a new bank account that we're unable to verify, it may delay the payment process.
Annuities - another way to take money from your pension
Some people prefer to know that they'll have an income to cover the whole of their retirement. If this sounds like you, an annuity might work in your favour. Most annuities provide you with a lifelong, regular income that is guaranteed to last as long as you live. A quarter (25%) of your pension pot can usually be taken tax-free before you buy the annuity and any other payments will be taxed as earnings.
Helping you plan for your retirement
Learn more about pension drawdown
If you’re new to the term drawdown, need a refresher or are approaching retirement, we'll help you weigh up your options and see if drawdown is right for you.
Retirement planning calculators
Our calculators can help you to look more closely at various aspects of your retirement, from planning your goals and your savings to working out your withdrawals.
