This is the type of income drawdown that Chelsea offers.

You will be eligible to receive 25% of your pension pot. Please note that you do not have to take the tax-free cash at 55, if you do not want to. You can continue contributing, or leave it as it is.

Once you have put your pension into drawdown you will receive 25% as tax-free cash. You can then decide what you want to do with the rest. You could decide to leave the income section invested and (hopefully) growing, take a single payment or start taking a regular income payment.

Please note that income payments are taxed based on your relevant tax bracket, and you may find that the first income payment is emergency taxed.

Once you take income from your pension, you will trigger the MPAA allowance and will be limited to what you can save into your pension.

This is a type of retirement income which provides you with a regular payment, usually for life.

Chelsea does not currently offer annuities.

Capped drawdown (available, if set up before April 2015) is an alternative to purchasing an annuity. This is now only available to individuals who went into capped drawdown before the 6th April 2015.

You will still be able to invest up to £60,000 a year, including tax relief where applicable.

The amount you get at retirement is based on a number of variables. These could include how long you have been a member of the scheme, your earnings, etc. In most cases, when you retire, you can take some of your pension as a tax-free cash lump sum. The rest you will receive as a regular income, on which you may have to pay tax. If you are unsure, you may wish to seek financial advice.

A regular payment from the government you can receive when you reach state pension age. The amount varies and is based on National Insurance contributions.

Please note that the age you can access a personal pension is much earlier than the state pension.

Are you on track when it comes to saving for your retirement? If you aren’t sure why not check out the Money Advice Services calculator here.

If you would like to discuss your options, when taking pension benefits, please do not hesitate to contact us.