What you can do with your pension pot

When you retire, you need to decide what to do with the money you’ve saved towards your pension – your pension pot. There are lots of options to consider, and it’s important you make the best choice to meet your future needs.  

What is a pension pot?

Your pension pot is the total amount of pension contributions you and/or your employer have made to save for your retirement. Your pot also includes any capital growth earned from the fund’s investments, depending on how your scheme was set up.

Your pension pot doesn’t include your State Pension which is provided by the government.

Your fund should send you a pension statement once a year that tells you how much your pension pot is worth, or there may be an option to check this on their website.

If you’ve made pension contributions into multiple pension pots then you’ll need to contact each fund separately for a statement.

When can I withdraw money from my pension pot?

You must have reached a certain minimum pension age set by your pension fund provider to access your pension pot – usually 55 years.

You may be able to withdraw your pension earlier if you’re retiring because of poor health or disability, but the rules depend on your pension scheme.

Be aware of pension scams as you are nearing pension age. Fraudsters are more likely to approach you with advice about withdrawing and investing your pension. They may attract you by making a false claim that you can access your pension before you’re 55.

How can I use my pension pot?

You have the freedom to choose how you use each of your pension pots, based on what best suits your needs. Each option comes with its own set of rules, fees, benefits, risks and tax issues.

Deciding what to do with your pension pot can be complicated – there are many factors to consider and financial terms to understand. Seek advice from a regulated independent financial adviser before making any decisions and consider all your options carefully - see the link to the Money Advice Service below.

What should I do next?