How to take your pension: our new printed guide

The new guide outlines the process for taking an income from a defined contribution pension – the most common type of pension in the UK.

A defined contribution pension can be taken in different ways, so the guide explains all the available options and how to get further help making a decision. This includes free Pension Wise guidance appointmentsOpens in a new window and how to find a regulated financial adviserOpens in a new window.

The guide breaks down the process into 7 clear and actionable steps – including when to consider starting each one:

• Step 1: Understand how your pension works, including finding old or lost pensions
• Step 2: Check the age you can take your pension
• Step 3: Check your estimated pension income
• Step 4: Compare the options for taking your pension
  • Leave your pension invested and retire later 
  • Take income as and when you need it (pension drawdown) 
  • Get a guaranteed regular income (an annuity) 
  • Take multiple lump sums 
  • Take your whole pension in one payment 
  • Combine these options
• Step 5: Consider which options match your plans 
• Step 6: Shop around to find the best deal  
• Step 7: Start taking your pension when you’re ready.

The guide is designed to help anyone with a UK-based defined contribution pension.

All personal pensions set up by individuals are defined contribution and most recent pensions set up by employers are too – there are over 31 million workplace defined contribution pensions in the UKOpens in a new window according to The Pensions Regulator.

The steps in the guide start from around 10 years before someone would like to take their pension. This means the guide is likely of most use for those aged 45 to 65, as the earliest a pension can be accessed is usually age 55 (rising to 57 from 6 April 2028).

But people of any age might find it helpful to understand how their pension works and their future options.

Defined contribution pension providers automatically send a copy of the guide to their customers:

• when they reach 50
• every 5 years after that until that pension has been accessed. 

This is part of a ‘wake-up pack’ with other important information about a customer’s pension.

MoneyHelper content is continually updated based on customer needs, feedback, consumer research and accessibility guidance.

‘Your pension: your choices’ had been updated each year to make sure it stayed correct, but the content and design had largely remained the same.

After exploring how the printed guide is used, and with the learnings from our revamped digital content, we tested a new name and front cover before embarking on a complete redesign.

Restructuring the guide into actionable steps meant we could lose repetition and make it easier to navigate. For example, if a customer received the guide at age 50, they might start at step 1. If they received another copy at age 55 or 60, they might start at step 3 or 4.

This all meant the overall word count could be reduced by over 40%, even after adding information about claiming the State Pension – which was not covered before.

The new guide would not have been possible without the help and support of AegonOpens in a new window, who provided their expertise and user testing resources for free. This enabled us to make changes based on real-life feedback from customers receiving the old guide as part of Aegon’s wake-up pack.

Our new guide is also certified by Plain NumbersOpens in a new window, which means it has their formal seal of approval as being a high standard of communication. Their feedback helped us to make sure the guide was accessible to as many people as possible, including anyone who is not normally confident with numeracy.

The new guide is available on the MoneyHelper guide ordering portalOpens in a new window in English and Welsh:

• How to take your pension (English)Opens in a new window
• Sut i gymryd eich pensiwn (Cymraeg)Opens in a new window.

Printed copies are free for individuals and not-for-profit organisations. If you’re ordering on behalf of a commercial organisation, you can: 

• request free artwork for you to print yourself 
• pay for printed copies to be sent out. 

For support, contact [email protected]Opens in a new window.