Pension income

From the age of 55 (57 from 2028), you have a number of options available. You can leave your pension pot and continue to save or, if you want to take an income and need access to money in your pension, you can choose any of the below options.

Once you reach age 75, we can no longer accept any contributions, even if this is to cover administration fees of the account. Due to this, you should make sure you have available cash in your SIPP to cover any administration charges when they are due.

SIPPs are a pension product and you will not be able to withdraw your funds until you reach the age of 55. You may be able to access your money earlier if you can’t work due to illness.

Pensions are a long-term investment. The retirement benefits you receive from your pension account will depend on a number of factors including the value of your account when you decide to take your benefits, which isn't guaranteed, and can go down as well as up. The value of your account could fall below the amount paid in. Tax treatment depends on individual circumstances and may be subject to change in the future.

Need some advice or guidance?

Planning for your retirement is an important step towards financial security in later life.

We can give you information to help you make an informed choice. But, this isn't the same thing as getting guidance or advice, and we won't give you a recommendation of what to do next. You can get free and impartial guidance from the Government's Pension Wise service, which is provided by MoneyHelper.

You get free help and guidance through Pension Wise. If you're over 50, you'll also benefit from a free 60-minute appointment.

If you’re unsure which option to choose, we recommend you speak with a financial adviser. They’ll talk to you about what your finances look like today, and your plans for tomorrow and recommend the best products to suit your situation. They will charge you for this service. You can visit Unbiased or Vouchedfor to find a financial adviser near you.

Your options at retirement

Our SIPP offers flexible options, so from age 55 (57 from 2028) you can take money from your pension, when the time is right, in a way that suits you.

Leaving your pension pot invested

Leaving your pension pot invested

You might be able to delay taking your pension until a later date.

If you don't need access to your pension pot, then you can leave it invested and continue to save.

Take taxable lump sums

Take taxable lump sums

You can take a one-off payment from your pension or a series of lump sums, keeping the rest of your pension invested. The first 25% of each lump sum is tax-free, with the rest subject to tax at your usual rate of income tax.

When withdrawing income as part of flexi-access drawdown or Uncrystallised Funds Pension Lump Sum, you’re still in full control of your pension, so it is important to review and monitor your investments regularly.

Use your pot to provide a flexible retirement income

Use your pot to provide a flexible retirement income

With this option you can normally take up to quarter (25%) of your pension pot as a tax-free lump sum and leave the remaining amount invested.

You can then choose the income level you want to withdraw from the SIPP (within certain limits), but any further withdrawals are subject to your usual rate of income tax.

Use your pot to buy an annuity

Use your pot to buy an annuity

You can normally withdraw up to a quarter (25%) of your pot as a one-off tax-free lump sum, then convert the rest into a taxable income for life called an annuity.

An annuity provides you with a guaranteed, regular retirement income for the rest of your life. Once you’ve chosen an annuity, you can’t stop it or change it so it’s a very important decision.

We don’t offer an annuity, but you can transfer to an annuity provider to take your benefits this way.

Ready to take the next step?

Your retirement guide

Your retirement guide

If you’re looking for more information on your retirement options, our helpful guide can assist you in making an informed decision.

SIPP retirement guide (PDF, 300 KB)

Your retirement journey

Your retirement journey

Scottish Widows, are here to support you with your retirement. They’ll provide useful checklists and information to help you decide how and when to retire.

Scottish Widows Retirement

We're all part of Lloyds Banking Group, which incorporates many well-known companies including Halifax, Scottish Widows, Halifax Share Dealing Limited and Embark Investment Services Limited.

Our retirement partner for our pensions is Scottish Widows, who have more than 200 years experience in pensions and retirement.