We get loads of enquiries from lots of customers who are coming up to retirement age, and who are thinking about when they can start to take benefits from their personal pension.
Here in the UK, an individual’s personal pension drawdown age will depend on several factors, including the type of scheme they used, their state of health and to a larger extent, legislation that governs all pension products.
This article should give you an idea of your pension drawdown options at different ages, and will cover:
Pension drawdown is usually available from the age of 55, as long as your scheme offers this facility. If this isn’t the case, you could consider switching to a plan that does include a drawdown feature - make an enquiry to speak with a pensions expert for more information.
Can I take pension drawdown before retirement?
Customers often ask us ‘can I draw down from my pension before retirement’? The answer is often yes, as long as you have reached the age of 55 and are enrolled in a scheme that offers pension drawdown. Some people choose to move into part time work at 55 while taking pension contributions to make up for the drop in income.
Pension drawdown age 50
It isn’t usually possible to take funds from a pension of any type before the age of 55, so taking funds from a drawdown pension at 50 is extremely rare. However, there can be exceptions in cases of early retirement and/or ill health. Take a look at the latest government guidelines here for more information on taking your pension early or make an enquiry and one of the experts we work with will go over all of your options with you.
Pension drawdown at 55
The official minimum age for taking a private pension is 55 years in the UK, so from 55 you are entitled to access these savings under the flexibility rules introduced in 2015. 55 is also therefore the income drawdown minimum age, so you can benefit from pension drawdown if your scheme offers it, or transfer to one that does.
Income drawdown at 55 is a popular option in particular for those who want to take early retirement or move into part-time employment while benefiting from their savings. While pension drawdown is by no means guaranteed for life and taking any pension before 60 is considered to be early, those who opt for drawdown of pension at 55 will benefit from the fact that their pension pot continues to grow as funds remain invested.
Pension drawdown at 60
Many people choose to take their pension between 60 and 65, which is usually before the state pension kicks in, depending on your year of birth. As is the case for anyone aged 55 or above with a drawdown pension, they will benefit from the flexibility of being able to take a tax free lump sums or set up a regular income with a tax free element added (UFPLS), and will have the additional peace of mind of knowing that remaining funds will remain invested for the future.
Pension drawdown after age 75
If you’re fortunate enough to have enough to live on without dipping into your pension pot before you reach the age of 75, your savings will continue to grow tax free. However when you reach 75 your pension pot will no longer benefit from the tax relief.
With this in mind, pension or income drawdown at age 75 is certainly possible as long as you are with the right scheme and provider, and there is no upper age limit on when you can move your funds into a drawdown pension and start benefiting from it.
Some providers and schemes do not allow savers to delay taking their pension as late as age 75 or above, so it’s important to check this detail in advance in case you need to switch.
Get access to expert advice on drawdown pensions today
If there is anything else you want to know about drawdown pensions, the experts we work with will be more than happy to answer your questions. Give us a call on 0800 304 7880 or make an online enquiry here and we’ll get right back to you.
We won’t charge a fee for this service, you’re under no obligation to take the advice and your credit rating will be unaffected. All you need to do is sit back and let us do the legwork, while we find the most suitable broker for you.
*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The info on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA.Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.
Tony has worked in a vastly diverse array of areas in the pensions industry for over 2 decades. Tony regularly writes for trade press, usually on topical and pensions pieces as well as acting as a judge at prestigious national events. Tony is also a highly qualified Independent Financial Adviser in his own right. His mantra has always been "Hope for the best, but PLAN for the worst", and believes that the biggest impact that an adviser can have on a client's life journey is to take them on a journey from generally having little or no real idea of what their retirement will look like, to giving them the understanding of what their retirement looks like now, then helping them navigate a path to what they WANT their retirement to be.