You may not need the money just yet, in which case you might want to consider leaving your pension pot invested.
Nigel has reached his State Pension age but is still working as a pub landlord. Having looked at the income his pension would provide, he doesn't feel that retiring now would give him enough to maintain his current lifestyle. He hopes that in a few years’ time his pension savings might generate a more comfortable income.
Change the pot size to see how it affects Nigel's figures
If you die before you take any money out of your pension pot, the money will go to your dependants tax-free if you die before age 75.
It may be subject to taxation if you die at aged 75 or over.
Most people estimate that living reasonably comfortably in retirement requires around 60%** of the income you had while you were working. However, as a guide for a basic standard of living, a retired couple will need a minimum income of £11,362* per year. If you’re single that amount becomes £7,740* per year.
** Source: Scottish Widows, October 2014
* Figures calculated using minimumincome.org.uk – as at June 2015.
You can continue to work and defer taking your pension pot or State Pension. Alternatively you can take either and continue to work.
Unless there are very good reasons, your employer cannot terminate your employment just because you reach a certain age.
If you don't need the income just yet, you can defer your State Pension which will increase the amount paid when you do claim it.
Your plan is fully covered by the Financial Services Compensation Scheme. More information about compensation arrangements is available from the Financial Services Compensation Scheme, who can be contacted on 0800 678 1100 or 0207 741 4100 or at their website at www.fscs.org.uk
Go back to the Taking your money home page to look at a different stage.
Have you thought about what your plans mean for your retirement income? Our calculators can help you work it out.
Got more than one pension? Then you could think about putting them all in one place. Combining your pensions with Scottish Widows is simple and we won't charge you for this service.