Can I Take Money Out of My Personal Pension?

Is there a particular age I can take money out of my personal pension? Is it fixed at state retirement age or can I take cash anytime?

Question asked by Kay Rivers

If you haven’t yet reached the age of 55, you usually won’t be able to take any money out of your pension. If you try to take money out of your pension before this age there could be a 55% tax charge.

If you are aged 55 or over and have a defined contribution pension, otherwise known as a money purchase scheme, you will be able to cash in as much of your pension as you want to. This is sometimes known as pension release.

Tax on Personal Pensions

However, you should consider the tax consequences and the effect on your retirement income if you deplete your pension fund too quickly. It is often possible to take up to 25% tax free but anything in excess of this would be taxed at your marginal rate of income tax.

Moreover, if you cash in your entire pension in one go, you won’t have anything to live on in your old age. You’ll also be subject to inheritance tax on the amount you’ve withdrawn if you die without it being inside a pension wrapper.

If you are at all unsure what to do, please contact us for pensions planning advice specific to your current situation from one of our qualified Financial Advisers.

Our Services & Tools

Get In Touch

Do You Need Some Help?

Our purpose is simple: Improve Your Financial Wellbeing.

We use clever technology to bring your financial future to life 🤓

See Your Financial Future
  • Find, organise and simplify your Pensions, ISAs and other investments.
  • Plan your financial future and put a strategy in place to achieve this.
  • Regularly review how you are doing to make sure you stay on track.

Pension Pot Calculator

Pension Drawdown Calculator

Final Salary Calculator

Contact Us
Head Office & Pensions and Investments
Senator House
85 Queen Victoria Street
London
EC4V 4AB
Personal Insurance & Accounts Payable
Telecom House
125-135 Preston Road
Brighton
BN1 6AF
Drewberry London Office MapDrewberry Brighton Office Map
Our Core Principles
  • 1You Come FirstWe are a client focused business who always aim to put you first.
  • 2We are ExpertsTo provide you with the best advice, we need to know our stuff!
  • 3We are HumanWe are real people with feelings who are here to help you.
  • 4We are ProfessionalProviding a 5-star service requires a professional approach to everything we do.
  • 5We are here to EducateWe don't believe in sales, we are here to educate so you can make informed decisions.
Finalist - Moneyfacts AwardsFinalist - Cover Excellence AwardsHighly Commended - Protection Review Awards
Proud member of AMII (Association of Medical Insurers & Intermediaries)Proud member of Money Advice ServiceProud member of UnbiasedProud member of BIBA (British Insurance Brokers' Association)

If you are unhappy with our service, we have a complaints procedure, details of which are available upon request. If you are unhappy with how your complaint has been dealt with, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The FOS website is www.financial-ombudsman.org.uk.

Drewberry Ltd is registered in England and Wales. Companies House No. 06675912

Drewberry Ltd registered office: Telecom House, Preston Road, Brighton, England, BN1 6AF. Telephone 0208 432 7333

Drewberry Ltd (Financial Conduct Authority No. 505473) is an Appointed Representative of Quilter Wealth Limited and Quilter Mortgage Planning

Limited, which are authorised and regulated by the Financial Conduct Authority.

Drewberry™ uses cookies to offer you the best experience online. By continuing to use our website you agree to the use of cookies. If you would like to know more about cookies and how to manage them please view our privacycookie policy.