What this form is for
You’ve already taken money from your pension plan and used all of your tax-free lump sum. You now want to:
- withdraw money – of less than £50,000 and / or
- set up a new withdrawal or increase a regular withdrawal – up to a maximum of £2,000 a month
If this matches your situation please read all the information below and then fill out our webform.
Help and support
We strongly recommend you get guidance or advice before deciding what to do.
Free impartial guidance with Pension Wise
Get free guidance over the phone or face to face with a pension specialist.
Pension Wise is a government backed service from MoneyHelper. They offer impartial guidance to over 50’s.
They don’t recommend products or tell you what to do with your money, but they will help you understand your overall financial situation. Some things they’ll explain are all your retirement options, tax implications and what you should check before you make any final decisions.
The quickest way to book an appointment is online at moneyhelper.org.uk/nudge-public. You can call them free on 0800 100 166. Or call us and we can arrange this for you.
Speak to a financial adviser
If you’re not sure what to do, we’d encourage you to get help from a financial adviser. There’s likely to be a cost for this but it could save you money in the long run. An adviser will look at your circumstances and make a personal plan that meets your financial goals.
At the end of the form, we’ll ask you to confirm what you chose to do for guidance or advice.
You should now read all the information in the tabs below to make sure you are fully informed about your decision.
Have you shopped around?
Before making a decision, it’s important to shop around to compare what other providers can offer you. You could be financially better off.
You don’t have to set up your withdrawals with us. You can switch provider at any time. Things to compare are the different products they offer, the investment choices available and the charges.
Pension scams are on the rise in the UK
As you access your pension it’s important to be aware of potential investment scams. These scams can be very convincing and could lead to you having a lifetime’s worth of savings stolen in a moment.
If you’re worried about a potential scam – call the FCA helpline on 0800 111 6768. To help you check if an investment or pension opportunity is a scam, use the tool on the FCA’s ScamSmart website fca.org.uk/scamsmart.
Understand the tax you’ll pay
When you withdraw money from your pension plan, it counts as income and is usually taxed like any other kind of income. As you’ve taken all of your tax-free lump sum from this plan, it’s important to know that taking money out could push you into a higher tax band.
How we’ll tax your payment
We follow HMRC guidance which means we normally have to deduct more tax upfront. You then have to reclaim it later. Get details on how to do this at gov.uk/government/collections/income-tax-forms.
Reduce your tax
You may pay less tax if you spread out your cash withdrawals over more tax years and keep below higher rate bands. Or you might be able to take tax-free lump sums from other pensions you have.
Leaving your pension savings to your loved ones
Pensions can be a tax efficient way to save your money and leave it to your loved ones. Any money that you take now, and don’t spend, could be liable for inheritance tax if you die.
It’s important to tell us who or where you want your money to go to on your death, so that we can take this into account when deciding who to pay your pension savings to. These are known as your ‘beneficiaries’. Find out more at standardlife.co.uk/beneficiaries.
If you don’t have a nominated beneficiary in place, why not do it now?
Entitlement to benefits
Taking money from your pension plan could affect you or your partner or spouse’s entitlement to ‘means-tested benefits’. This could include things like housing benefit or income support. Your entitlement to future benefits like help with long-term care, could also be reduced or stopped. Some government benefits are means-tested. These are benefits awarded based on a person’s financial situation. Go to gov.uk to learn more.
Pension income and debt
If you plan to use this withdrawal to repay debt, there may be early payment penalties. You should also think about the tax you’ll pay. This means you may not be able to pay off as much debt as you want to.
If you have a bankruptcy or County Court Judgement against you, this payment could be used by creditors to pay off outstanding debts.
Make sure you understand all the options available to manage your debts. There may be a better option than taking money from your pension plan.
If you need help with managing debts, try National Debtline or Citizens Advice for support. MoneyHelper also has some useful information around dealing with debt.
Future payments into your pensions
You can still pay into your pension plans. This includes payments from your employer or any third-parties.
When you take more than the tax-free lump sum out, the maximum that can be paid into any of your defined contribution pensions without a tax charge, reduces to £10,000. This is called the ‘Money Purchase Annual Allowance (MPAA)’. If you exceed this limit a tax charge of up to 46% may apply.
How long your money could last
The main aim of a pension is to give you an income throughout retirement. How much money you take, when you take it and how your investments perform, will affect how long your pension lasts.
You should:
- manage your withdrawals and plan for the future, taking all of your sources of income into account
- review any regular withdrawals often
Prices tend to rise over time. So, if you want to maintain your standard of living you need your retirement income to keep pace with inflation. Taking money out of your pension or changing funds when investment markets are falling, could affect how long your money might last. Or could mean that your money runs out altogether.
Keeping some of your pension invested means it has the potential for future investment growth.
Review your investments
Take the time to check your investments regularly and make sure your choices still suit your needs.
We offer two different ways to invest, ready-made investment options for people that need help or you can choose your own. You can see all the investment options available by logging into your personal dashboard and opening ‘My Retirement’.
Other ways to take money from your pension
If you’re using the money in this pension plan to live on, it’s really important you’re comfortable with how long it’s going to last.
If you’re worried about your pension running out, you could set up a guaranteed income. This a fixed regular income for the rest of your life – also known as an annuity.
Please complete the form below
A pension is an investment and its value can go down as well as up and may be worth less than was paid in.
Your fund will stay invested until we process your application and its value may go up or down.
This information is based on our current understanding in March 2024. Laws and tax rules may change in the future.
Your options and the tax you’ll pay depends on your personal circumstances. If you need advice you should speak to a professional like an adviser or an accountant.
Data protection
We're committed to maintaining the trust and confidence of our customers. Our Privacy Policy explains how we use our customers' personal information. It explains when and why we collect personal information about our customers, how we use it, the conditions under which we may share it with others and how we keep it secure.
It also explains how you can obtain details of the information we hold about you, and the choices you have about how we use that information.
How long it could take to get your money
We'll aim to get your payment to you around 10-20 working days after we get this form. In some circumstances, it could take longer.