Legal age to withdraw from your Penfold pension:
Currently, you cannot legally access or withdraw any money paid into your Penfold pension until you are 55, unless you have suffered from a severe illness and are unable to continue working, or have a life expectancy of less than 12 months.
However, the government have announced that the minimum age to withdraw from a private pension will increase to 57 years old in 2028.
When you reach 55 years old, you can start to access your pension. You will normally be able to withdraw 25% of the total value as one tax-free lump sum, and there are several options available to help you decide how to live on the remainder.
There are different ways of using your pension to create an income for the rest of your life, either by taking out enough each year to cover your spending money that year and leaving the rest invested, or by buying a product called an annuity that essentially pays you a salary for the rest of your life. It’s usually a good idea to take specialist financial advice about what to do with your pension pot when you retire.
Are there any exceptions?
In certain circumstances, such as a serious illness, you may be able to access your pension early. When you pass away, your Penfold pension would be transferrable and available as a pension to anyone nominated by you. The pension can either be paid as a lump sum, an income or the fund can be used to buy an annuity for the individual you nominate.