You may be able to use your pension savings in a number of ways when you retire. You could do any of the following:

1. Take all of the money as a cash lump sum. 25% of this will be tax-free and the rest will be taxed as income and subject to tax at your marginal rate.

2. Leave some of your funds invested and take up to 5 lump sums when you wish. You can continue to do this throughout your retirement as long as you have funds to withdraw. 25% of each lump sum will be paid tax-free.

3. Use all of your funds to buy an annuity (a guaranteed income for life paid for by an insurance company). This can be with or without taking 25% of the value of your pension savings as a tax free cash lump sum .