Security vs flexibility – what’s the most popular retirement option?

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We look at the most popular retirement options and how the retirement landscape has changed over the years.

This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.

Published on 25 October 2023

It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.

Before 2015, some people with a defined contribution pension were forced to use their pension to buy an annuity (a secure lifetime income) when they retired. Then came the Pension Freedoms legislation and fast forward to today, the retirement landscape is very different.

If you have a defined contribution scheme like a Self-Invested Personal Pension (SIPP), you can now take your pension flexibly while keeping it invested in the stock market.

Here are some of the most popular retirement options, and how these have evolved over the years.

This article isn’t personal advice. Pension and tax rules can change, and any benefits will depend on your circumstances. You can’t usually access money in a pension until you’re 55 (rising to 57 in 2028).

To find out more about the type of pension you hold and your options, you could get guidance from Pension Wise.