One option available to you is to have a flexible income - taking it as and when you
need it. There are two main ways you can do this.
You may choose to take a flexible income directly from your pension pot.
You can take payments out of the pot as and when you need them. Your pension pot
stays invested, so its value can go up and down. The income received is taxed as normal although 25% of the initial fund can usually be taken as a tax-free lump sum.
As with the annuity service, JLT's Pension Decision Service can facilitate income drawdown, on an advised basis, or you may select your own Independent Financial Adviser. JLT can be contacted on 0800 280 2448. TPT was able to negotiate favourable terms for its members.
You could also transfer to another provider to utilise income drawdown or another flexible retirement option.
One further flexible option is to take your funds (including the tax-free cash element) in a series of slices.
In this case, you can take up to 25% of each slice tax-free, with the remainder subject to tax at marginal rates.
This option is known as a Multiple Uncrystalised Funds Pension Lump Sum.
You will need to transfer to another provider to utilise this option.