Cash

You can give up some of your pension in exchange for tax-free cash. This sounds very attractive; however, you do need to think about what this actually means.

Your decision is irreversible - are you sure you can live on the reduced amount of pension once you have spent the cash?

Top tips

  • If you're thinking of investing the cash somewhere else (say in a building society) the eventual return may be worth less than the pension you gave up.

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