Before you do anything, we strongly recommend that you speak to your financial adviser or get guidance from the Government’s free guidance service - Pension Wise. If you’ve thought through all the options and implications, and you’d like to access your AXA Wealth pension fund, please either ask your financial adviser to get in touch, or talk to us directly.
This free and impartial Government service offers guidance on how you can take your pension, find information on how much tax you could pay, an appointment with a pensions expert to talk about the options available to you.
It's available to anyone with a pension who's close to retirement. You can book a face-to-face appointment or arrange to speak to someone over the phone to help you understand your options and take the time to make the right decision.
It's important to think carefully about your financial options when you plan for retirement. An adviser can help you understand your options and recommend the best path for you.
If you don't have a financial adviser you can find one local to you using unbiased.co.uk.
You can normally take up to 25% of your pension fund as a tax-free lump sum. The reduced balance can then be used to buy an annuity or to start a drawdown pension.
An annuity is a policy you can get from an insurance company. You give them all or part of your pension fund to effectively buy the policy.
If you take a tax-free lump sum you can buy a policy with what’s leftover, although some insurance companies have a minimum amount. In return they normally give you a guaranteed income for the rest of your life. The income is taxable as pension income through PAYE.
You can use all or part of your pension fund to take an income, and if you take a tax-free lump sum, you can use what’s leftover to go into drawdown.
You can choose to vary how much income you take and how often, until the money runs out. Whatever you don’t take as income stays invested, so it can rise and fall over time.
The income you take is taxable as pension income through PAYE.
Uncrystallised means you haven’t yet used or allocated the pension fund, or a particular part of the fund. For example, you may only allocate part of your total fund into a drawdown pension or to buy an annuity, so what’s leftover is ‘uncrystallised’.
You can take a one-off lump sum, or series of lump sums, and 25% of each will normally be tax-free. You’ll be taxed on the rest of the lump sum as pension income through PAYE.
You, and sometimes your employer, make contributions to build up a pension fund. You can then use this fund to take an income and/or a lump sum in your retirement.
What you can take depends on factors like how much you pay in, and the investment performance. All of AXA Wealth products are classed as defined contribution schemes.
Sometimes they’re known as ‘money purchase’ pension schemes, and you’ll see this term in a lot of our literature.
Find out more about our offline pensions including the options, risks and charges.
Start saving in your twenties or leave it until later - the choice is yours.