You’re in control and are free to withdraw money as and when you need to. Under current rules, you can take up to 25% of your pot as a tax-free lump sum, and the rest stays invested in the way you choose. If you’re aged 55 or over, you have the option to use 'flexi-access' drawdown to withdraw some of the money in your pension pot. How can you access a flexible income in retirement? If this is a concern, you might want to consider using at least some of your pension pot to provide an annuity alongside your flexi-access drawdown facility. Also, if you take out too much cash too soon, or you set your regular payments too high, you could run out of money. Be aware, that the value of your investment can go down as well as up, so there is no guarantee that your pot will provide you with an income for life.Any money you withdraw will be classed as earnings for tax purposes. You can then use this pot to give you a regular income, or simply take lump sums as and when you need them. The balance of your pension pot stays invested, giving it the potential to grow provided your investments perform well. If you wish, you can take up to 25% of the pot as a tax-free lump sum. The most popular investment vehicle is a Self-Invested Personal Pension (SIPP).
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