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Taking money from your pension savings

How to take tax-free cash, lump sums or regular income

Important information:  the value of investments and the income from them, can go down as well as up, so you may get back less than you invest. Tax treatment depends on individual circumstances and all tax rules may change in the future. Withdrawals from a pension product will not be possible until you reach age 55 (57 from 2028).

Withdrawing pension savings - your options

If you're 55 and over and ready to start withdrawing money from your Self-Invested Personal Pension (SIPP) with Fidelity, we'll help you through the process online or by phone.

Through pension drawdown you can take tax-free cash, lump sums and regular income, while the rest of your pension savings remain invested.

If your pension is with another provider and you want to start income drawdown with Fidelity, you can transfer to Fidelity's SIPP, even if you've already started drawdown.

Important information - it’s important to understand that pension transfers are a complex area and may not be suitable for everyone. Before going ahead with a pension transfer, we strongly recommend that you undertake a full comparison of the benefits, charges and features offered. To find out what else you should consider before transferring, please read our transfer factsheet. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice.

Before you get started

Before you take money from your pension, you may want to take some time to think about how you'd like to take it and the level of guidance you'd like along the way. We'll always go the extra mile to make understanding pensions as easy as possible, but they can be complex. So it's wise to take your time to understand what works best for you.

  • Understand your options
    Ensure you've considered all your pension options, including pension drawdown
  • Essential reading
    Please read our essential information to help you make your choice. Taking care of your retirement money and investing.
  • Call our retirement specialists
    Need help with pension drawdown? Our retirement specialists offer free guidance and personalised paid for advice services. We're open 9am to 5pm, Monday to Friday. Call 0800 368 6882.
  • Pension Wise
    The government's Pension Wise service offers free, impartial guidance to help you understand your options at retirement. You can access the guidance online or over the telephone on 0800 011 3797. Visit Pension Wise via MoneyHelper.

How to start

You'll find information below on withdrawing your pension savings, depending on your needs and criteria.


Apply to take tax-free cash or lump sums Set up or change your income in retirement Apply with Fidelity's retirement service

If you still have tax-free cash available from your pension you can take all or some of it online.

If you'd like to take lump sums instead, where 25% of each withdrawal is tax free and the rest taxed as earnings, you can also do this online.

You need to:

  • Be at least 55-years-old (the normal minimum pension age)
  • Have a Fidelity SIPP with at least £30,000 available
  • If you have already taken money from your pension pot with other providers, then you will need to have the details of these withdrawals ready.
  • Read your 'Helping you plan for your retirement' pack (dated within the last 12 months). If you can't find it please call 0800 358 7480
  • Be a UK resident


If you want to take a taxable income or lump sum from your existing drawdown account you can do this online.

Please read the Taking care of your retirement money before amending your income.

Log in to your online account, select ‘Manage investments’ from the top of the page and then ‘Move or withdraw cash’.

You'll need:

  • Your bank details
  • How much gross income you'd like to withdraw from the drawdown account on a one-off or regular basis and if there's a specific investment you'd like the regular income to come from

If you've applied for a one-off income payment - we'll use your available cash and/or sell any investments you hold proportionately to make the payment into your bank account. If there's sufficient cash available the payment will take 8 working days. If we have to sell any investments you'll receive the payment within 13 working days.

If you're setting up regular income payments - we'll create your regular drawdown income plan and you'll receive confirmation in writing, including when the first payment will be made.

There may be instances where you won't be able to complete your task online and will need to speak to Fidelity's retirement service.

Call 0800 368 6882, Monday to Friday, 9am-5pm.

These instances include:

  • You live outside of the UK or you're a US person
  • You have a protected lifetime allowance or a transitional tax-free amount certificate.
  • You have less than £30,000 in your account
  • You have taken more than 90% of your Lump Sum Allowance. Learn more about pension allowances.
  • You're seeking to take your pension earlier than the normal minimum pension age of 55 due to ill health
  • You have a capped drawdown account


Learn more and apply

Log in to amend your income

Learn more about Fidelity's retirement service

Important information for when you start taking taxable money from your pension pot: If you want to continue saving into your pension pots after you start taking taxable money from it, the total amount you can contribute and receive tax relief on will be reduced from £60,000 to £10,000 a year under the money purchase annual allowance (MPAA).

Apply to take tax-free cash or lump sums online

What you'll be asked

You’ll be asked a series of questions to work out if you’re eligible to withdraw your pension savings online, including:

  • If you've taken any pension benefits previously or are likely to exceed your lump sum allowance.
  • Whether you have pension protection or a transitional tax-free amount certificate - as you may have a higher lump sum allowance than standard. Read more about the lump sum allowance
  • Have you sought guidance or advice on your options at retirement, either with a regulated financial adviser at your own cost or with the government's Pension Wise service?
  • Once you're in drawdown do you want to change where your investments are held?

What you need to consider

We’ll provide you with additional information to consider throughout the online application process. But before you begin, it helps to understand the two different ways you can withdraw your pension - Drawdown or Uncrystallised Funds Pension Lump Sum (UFPLS). You’ll need to know which route you want to take.

Drawdown (Flexi Access Drawdown)
Uncrystallised Funds Pension Lump Sum (UFPLS)

What happens once I've applied

Once we've received your withdrawal request:

  • We usually pay the amount within four working days if you've sufficient cash. If there's a shortfall, we'll use the cash available and cover the rest proportionately from your investments. In this case the payment may take up to 12 working days.
  • If you've added a new bank account that we're unable to verify, it may delay the payment process.

Annuities - another way to take money from your pension

Some people prefer to know that they'll have an income to cover the whole of their retirement. If this sounds like you, an annuity might work in your favour. Most annuities provide you with a lifelong, regular income that is guaranteed to last as long as you live. A quarter (25%) of your pension pot can usually be taken tax-free before you buy the annuity and any other payments will be taxed as earnings.

Helping you plan for your retirement

Learn more about pension drawdown

If you’re new to the term drawdown, need a refresher or are approaching retirement, we'll help you weigh up your options and see if drawdown is right for you.

Retirement planning calculators

Our calculators can help you to look more closely at various aspects of your retirement, from planning your goals and your savings to working out your withdrawals.