Generally on retirement you are given the option to take up to 25% of your pension as a tax-free cash lump sum to spend or save as you wish. This tax-free cash is available on most pensions. It can be taken any time after the age of 50, whether you retire or not (this age will change to 55 in 2010) and must be taken before the age of 75 when you must purchase an annuity.

Whether the retirement option you decide upon is an annuity, income drawdown (also known as pension drawdown) or a phased retirement, you are entitled to take a tax-free cash lump sum. Our clients have taken advantage of the tax-free cash for things like:

• divorce settlement
• home improvements
• paying off a mortgage
• paying off outstanding debt
• buying a second home, either in the UK or abroad
• purchasing a buy to let property for investment

If you'd like to find out more about how to take your tax-free cash entitlement, the different retirement options available and which one is right for you, call us on 0141 352 7800 and ask to speak with one of our pension advisers.

Office hours are Monday to Friday 9am to 9pm.  Outside these hours please leave your name, contact number, the best time for us to contact you and we'll have one of our advisers call you back.  Alternatively email us at advice@hendersonstone.co.uk.

HM Revenue & Customs practice and the law relating to taxation are complex and subject to individual circumstances and changes which cannot be foreseen.