Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

The MoneySaving Forum: join to chat & swap tips with other MoneySavers. Learn how in the Forum Introduction Guide

Guide to Taking Your Pension

Pension freedom - drawdown, cash or annuity?

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out

Martin and Amy | Edited by Johanna

Updated 3 Apr 2017

Get Martin's free printed guide

April 2015 saw the most radical changes to private pensions for a generation as the new Pension Freedom rules came into effect.

Before, most people had to use their pension pots to buy an annuity. Now, anyone 55 and over can take the whole amount as a lump sum, paying no tax on the first 25% and income tax on the rest. More choice – great. But it also means it’s easier to make a mistake.

Our free, detailed 40-page printed guide takes you step-by-step through how it works, whether income drawdown or annuties win, the tax situation and more.

What version would you like?

This could take four weeks to arrive, If you want it quickly download the pdf. If you still want the printed version, please fill out the form.

Why do we need your details?
Why do we need your details?

This is the printed version of the booklet. We need to post it to you. To pay for the printing and distribution, whilst completely editorially independent, the guide is sponsored by

However don't worry, we will not give your name and address to anyone else and you will not receive any further mailings whatsoever from us or

If you input your email address, we'll send you our weekly Money Tips email so you don't miss out on MoneySaving tips or mortgage news. If you don't want to sign up, leave the email field blank.

Why do we need your email?

To pay for the printing and distribution, while it's completely editorially independent, the guide is sponsored

As part of that, the sponsor needs to track how effective it is. But don't worry, we won't give your name and address to anyone else, and you will not receive any mailings whatsoever from us or It's purely for tracking purposes.

Who's it for?

This guide is for anyone considering using the money saved in their private or company pension – which usually, though doesn't always, relate to retiring. If you're eager to get to grips with the options but don't have much time, read Martin's five-minute briefing.

This guide isn't about saving into a pension or finding the best pension provider, nor is it about the state pension – if that's what you're after, see our Pension need-to-knows.

What's in the guide?

If you want a sneak peek before reading the whole thing, here's a quick breakdown and intro for each section of the guide...

  • Chapter 1: Take the long view

    This chapter encourages you to think about all the things that will affect when you take your pension, including thinking about how long you will live and what your incomings and outgoings will be as you get older.

  • Chapter 2: Taking your pension money – an introduction

    Here we explain the different types of pensions that you might have and help you if you think you may have lost track of any pensions over the years. We'll also give you an overview of the options you have when deciding what to do with your pension, explained in detail in the subsequent chapters in the guide.

  • Chapter 3: You can leave it all in your pension

    This is likely to be default holding position for most people until they are ready to take their pension money. But you need to be careful you don't get penalised for leaving your money where it is.

  • Chapter 4: You can take lump sums, leaving the rest in your pension

    This is one of the main new options that was introduced under new pension freedom rules that came into force in April 2015. This chapter will help you understand exactly how this option works, what charges you will be hit with, what the tax situation is and what happens to the money in your pension if you die.

  • Chapter 5: You can take 25% tax-free, then go into income drawdown

    With this option, you move all of your pension money into a new product, called income drawdown. This chapter will help you understand exactly how to do that, how it works, what the charges are and how much of your money you should be using as an income.

  • Chapter 6: You can take 25% tax-free, then buy an annuity

    Annuities - an income for life in exchange for your pension pot - have a bad reputation, but they will still be a good option for many. However, how much you get is down to many factors including the Bank of England base rate fall last August so it'll pay to compare rates on offer between providers. This chapter walks you through all the different types of annuities available, helps ensure you get the best rate and explains what happens to the money when you die.

  • Chapter 7: Getting help with your decision

    Deciding how to turn your pension pot into an income for the rest of your life is one of the most important decisions you will ever make. In this chapter, we talk you through the help that is available and when it's worth enlisting the help of an independent financial adviser.

  • Chapter 8: FAQs

    From finding out whether withdrawing your pension will affect any benefits you receive to how to avoid pension fraudsters, in this chapter we run through some of your most common questions about taking your pension.

How come the guide's free?

This guide is sponsored by That’s the reason we can print and distribute it for free. So let me make something very plain. This guide is written with absolute editorial independence. What’s in it is purely dependent on my, and my team’s, view of the best ways to take your pension, and the sponsor’s view on that is irrelevant.

Blue question mark is a database so you can find independent financial advisers near you, so we have no problem with it being in here.

It’s very important that this is understood and no one thinks it is the other way round. In other words, it is recommended as a place to find financial advisers because it sponsors the guide.

However, if it ever changed its business model to one that we did not agree with, then it would no longer be allowed to sponsor the guide.

Are there any more guides?

Yep! As well as all the online guides on this site, there's a selection of special PDF downloads:

The Remortgage Guide

For people who are after a cheap remortgage deal - not for the first time you get one. Get full PDF guide: Remortgage Guide.

Teen Cash Class

A 40-page guide to teach kids AND parents all the essential money lessons. Get full PDF / printed guide: Teen Cash Class

Mental Health & Debt Guide

This is a free 40-page PDF booklet supported by Mind, Rethink, and others. Get the full PDF guide: Mental Health & Debt

We only have a limited supply of printed copies, so please download the PDF version if you're able to.

Get Our Free Money Tips Email!

For all the latest deals, guides and loopholes - join the 12m who get it. Don't miss out