You can access your pension savings any time from age 55 (57 from 6 April 2028), whether or not you’ve stopped working. You can delay taking money from your pension savings. If you get close to your chosen retirement age and decide you want to keep paying in for a bit longer, you can.

It’s important you shop around to find the best option for your personal circumstances and income goals. It’s a big decision so it’s worth comparing what each provider can offer. Pension Wise is a government service from MoneyHelper that offers free, impartial guidance about your defined contribution pension options.

Kingfisher Pension Scheme Options

Take it all in one go

You can take your pension savings in cash as a single lump sum. You do not need to stop working to take this option, but you would need to think about where your income will come from when you do stop working.

A quarter of it will usually be tax-free but the rest may be taxed as income.

Get a guaranteed income

You can take up to a quarter of your pension savings as a cash lump sum and use the rest to buy a guaranteed regular income for a fixed period or for the rest of your life. This is known as an annuity.

Annuities have a number of features, for instance you can arrange for payments to continue to your dependants after your death. Smokers and those in poor health usually get better rates because of their shorter life expectancy.

You can take up to a quarter of your pension pot as tax-free cash. Each annuity payment may be taxed as income.

Other Options available if you transfer your benefits out of the Kingfisher Pension Scheme

If you are interested in the options below, you will need to transfer out of the Kingfisher Pension Scheme.

Different providers offer different products which have different benefit options at retirement and you should check the product you choose is appropriate for your personal circumstances and it is recommended that you take independent financial advice.

Take it in a series of cash lump sums

You can leave your savings invested and withdraw it as cash lump sums as and when you wish. The money left invested has the chance to grow but it could go down in value too.

If you choose this option, you may wish to spread your withdrawals over a number of years to minimise the amount of tax you pay.

The first quarter of each amount you take will be tax-free but the rest may be taxed as income.

Take a flexible regular income

You can take up to a quarter of your pension savings as a cash lump sum and leave the rest invested to provide a regular income, and occasional lump sums if required. This is often referred to as flexi-access drawdown.

You can vary, stop or suspend the amount you’re taking at any time. You may be charged for varying the amount.

The money left invested has the chance to grow but it could go down in value too. If you take out too much or your investment funds don’t perform as well as you’d expected, you could run out of money before you die. 

Legal & General provide a product called a "Mastertrust" from which drawdown is available. If you would like to transfer to the Legal & General Mastertrust or would like more information about this option you can go to www.legalandgeneral.com/pensionscheme-e for further details. Other drawdown options are available and you may wish to seek independent financial advice.