What does 'taking benefits' mean?

Taking benefits means taking money from your SIPP. You can do this at any time following your 55th birthday, and you choose how you take those benefits – as a lump sum and/or an income. You can take money from your SIPP through a variety of options, including drawdown, a series of smaller lumps sums or an annuity.

You can take up to 25% of your pension as a tax-free lump sum, and as you take the remaining income from your fund you will be taxed at your marginal rate. Please note tax rules can change in the future.

Take a look at our comprehensive guide to accessing your pension to understand more about the options available to you.