How you can take your money
You can do three things with the money in your pension pot:
- Buy an income for the rest of your life – this is called an annuity
- Take it all out as cash – but this might mean you get a big tax bill
- Invest it and take an income from it – this could be a regular income or one-off amounts.
Before you do any of these, you can take a quarter of your money in cash – without paying tax on it.
If you’re not sure which option might be right for you, Royal Mail can pay for you to get financial advice.
Go to our video hub where you can watch a short video showing you the different ways you can use your money:
There are tools on the Scottish Widows website to help you plan your retirement.