Changes to the benefit options for pensions are now available to use in some schemes.
You can still take a quarter of your pension pot tax-free – also known as Pension Commencement Lump Sum (PCLS). The remainder is taxable, as income, when you draw it out.
Your pension fund can be used to purchase an annuity, or be taken out all at once, or in stages with some remaining invested. Whichever option you choose, all withdrawals and income, over and above your PCLS, are taxable.
Check with your current pension provider about what options they will offer, and for features and options in your existing arrangements.
It's vital to take the time to understand your options and work out what is right for you and for loved ones who may depend on you. You can get more information on your options from a new guidance service set up by the government called Pension Wise.