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Pension rules introduced on 6 April 2015 gave pension savers unprecedented access to their funds. If you are aged 55 and over, you are now able to draw your pension however and whenever you choose - take it all at once, or in stages, or keep it invested.

Pension scheme

If you are 55 or over and have a defined contribution (otherwise known as a money purchase) pension plan you will be able to:

  • Use your pension to buy an annuity – which will provide you with a guaranteed income for life
  • Take the whole lot as a cash lump sum
  • Keep your money invested, and withdraw sums whenever you want.

Whether you take your money in one go or in stages, 25% of your pension fund withdrawn will be tax-free, the rest will be taxed at your marginal tax rate or possibly 0% if your total annual income falls within your personal allowance. 

Pension treatment on death has changed

  • If you die before the age of 75, you can now pass on your unused pension as a lump sum to any beneficiary completely free of tax, without it affecting their normal rate of income tax.
  • If you die after age 75, you can now pass on any unused pension to your beneficiary either as a lump sum or as income taxed at their marginal rate, without it affecting their normal rate of income tax.

You should check whether your current pension plan gives you full access to these new freedoms – not all do.


How can the Family Building Society help?

As a responsible Building Society, we believe it is important that our customers have access to independent experts to assist them in their financial planning. We've partnered with Quilter Financial Advisers, who have helped thousands of clients to retire securely.

Call Us On

03300 244593


Quilters in partnership - small                                           



Family Building Society
Ebbisham House
30 Church Street
Surrey KT17 4NL
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