At Normal Retirement Age
When you are approaching your Normal Retirement Age, we will write to you with full details of your pension benefits and your options relating to your pension about four months beforehand.
Your pension is flexible. You can choose to use it all to provide a monthly income, or take part of it as a lump sum on retirement.
You can exchange part of your pension for a tax-free lump sum when you take your benefits.
This is currently paid tax-free. HM Revenue and Customs sets a limit for the amount you can take. If you choose this option, there will be less money for your monthly pension.
You also give up the future annual increases on any pension you give up for cash, and the pension is given up for life.