The Moneybox Pension

All topics Pension basics The Moneybox Pension How do I access my pension for retirement?

How do I access my pension for retirement?

You can start withdrawing your pension from a defined contribution pension from age 55 (increasing to 57 in 2028).

If you have a defined contribution pension, whether it’s a workplace or a personal pension, you have a number of options. Moneybox offers the following:

  • Withdrawing directly from your Moneybox pension as a full lump sum. Moneybox offers both Small Pots Lump Sum (provided that your pension meets the criteria) and Uncrystallised Funds Pension Lump Sum (UFPLS).

  • By receiving a tax-free lump sum from Moneybox and using the rest of your pension to purchase an annuity from a provider of your choice. You can find information on purchasing an annuity on MoneyHelper’s website here.

  • By taking a tax-free lump sum and moving the rest into a Drawdown Pot with Moneybox. This is also known as flexi-access drawdown.

  • Leave your pension where it is. If you have a defined contribution pension and want to delay retiring, you can keep building your pension pot until you are 75.

If you are unsure about your options, you may wish to speak to PensionWise who offer free, impartial guidance on Defined Contribution Pensions.

Please note that Moneybox cannot offer personalised financial advice or make specific recommendations based on your individual circumstances. If needed, seek independent financial advice before making a decision about your retirement.

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It's important you know

Capital at risk. All investing should be for the longer term. The value of your investments can go up and down, and you may get back less than you invest. Tax treatment depends on individual circumstances and may be subject to change in the future.

A 25% government penalty applies if you withdraw money from a Lifetime ISA for any reason other than buying your first home (up to £450,000) or for retirement, and you may get back less than you paid into your Lifetime ISA.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Payments you make into your pension won’t be accessible until the minimum pension age (currently 55, increasing to age 57 from 2028). Tax treatment depends on individual circumstances and may be subject to change in the future.

For Business Saver: T&Cs apply. Max one withdrawal per day.

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