A quarter of the money you have built up will be paid to you free of tax to a bank/building society account of your choice. The rest of your fund is paid as an income, which will be taxed under income tax. You will not have to pay national insurance on those pension payments.
The pension payments can vary as you choose. Pension types are also available, for example if you would like certainty of income for life; pension can be paid as an annuity – i.e. it is paid for the whole of your life. You can even take all of your pension pot as one lump sum. We can give you specific guidance on this nearer the time.
