There are many different ways in which to increase your pension but the obvious way is to pay more money in. The earlier you start paying into a pension, the more time your money has to grow.

You have a number of options to access the money in your pension pot. These can vary dependant on your circumstances and your current pension plan in place:

• take some or all of your pension pot as a cash lump sum, no matter what size it is
• buy an annuity – you can take a cash lump sum too
• take money directly from the pension fund, and leave the rest invested (income drawdown) – there won’t be any restrictions for how much you can take
• a mix of the these options.

It’s important to know the different tax rules for each option.

There are a few factors which can affect how long your pension will last in drawdown. These factors consist of the following:

• How much you have in your pension?
• How much tax free lump sum will you take ?
• How your pension pot will be invested?

It is a possibility for your pension to run out so managing withdrawals and expectations from the outset could be a good idea to ensure your money lasts during retirement.

You will have to pay Income Tax on any income over your Personal Allowance. This applies to all your pension income, including the State Pension.

It’s always a good idea to explore your options with your pension(s) to see what plans are available and which one might work best for you.

Certain pensions may be eligible to pass onto your loved ones but is always best to check your current plan to see if this is a feature.