FAQs

No, there are many different ways you can take your pension pot. More details about your pension options are provided in the retirement options pack sent to you by Phoenix Life. You don’t have to choose just one option – you can decide to take the benefits from your pension pots at different times or transfer them to another provider to access different options.

It's important to shop around and get as much guidance and advice as you need to help you make a decision about what's best for you. Other providers may also have more appropriate products or be able to offer a higher level of retirement income.

You should read the retirement options pack that Phoenix Life has sent you, as this includes your current value and outlines the options available to you.

It's important to shop around and contact other providers to get comparative quotes, to see what they may be able to offer you as well.

We also recommend that you take advantage of the free and impartial guidance service set up by the Government, called Pension Wise a service from MoneyHelper. If you are then still unsure what to do, you should speak to a financial adviser. To find one in your local area visit unbiased.co.uk.

Free impartial guidance

The Government offers free and impartial guidance through a selection of organisations. 

Pension Wise a service provided by MoneyHelper

Offers a guidance session if you’re over 50 and in a defined contribution workplace or personal pension. You can chat to experts online, call or see someone face to face.

MoneyHelper

Provide online advice and guides plus tools, support over the phone and calculators on a wide range of subjects.

They also provide information on workplace and personal pensions for everyone.

Financial advice from an adviser

A financial adviser can provide you with a personal recommendation to help you make the right retirement choice, for a fee.

If you don’t have a suitable adviser already, you can find one in your area at unbiased.co.uk.

You should make sure that they're authorised by the Financial Conduct Authority (FCA) and you can check this on the FCA register.

The Silver Line

If you’re feeling overwhelmed or would like more general support, The Silver Line can offer information and advice.

Online: www.thesilverline.org.uk

Phone: 0800 470 80 90

Age UK

Age UK offers free and impartial advice on money matters in retirement, including pension options.

Online: www.ageuk.org.uk

Phone: 0800 678 1174

Legal & General Retail helps create brighter financial futures for all our customers. The division covers the savings, protection and retirement needs of our c.14 million retail policyholders and workplace members.

As of May 2024, we had over 1,011,000 annuity customers. In the 12 months to May 2024 we paid our customers over £3.29 billion in retirement income.

The income you receive from your pension is subject to income tax. The income tax bands for the tax year 2025/2026 are shown below. These are set by the Government and can change every year. You can check the latest details or historic tax bands directly at GOV.UK or with a financial adviser or an accountant.

If your total income from all sources adds up to more than your Personal Allowance you will have to pay tax at the rate shown below.

Tax band for 2025/26	Taxable income	Tax rate
Personal Allowance	Up to £12,570	0%
Basic rate	Between £12,571 to £50,270	20%
Higher rate	Between £50,271 and £125,140	40%
Additional rate	More than £125,140	45%

The tax you pay depends on your individual circumstances. The above examples are based on current law and tax rates and may change. If you live in Scotland or Wales you may have a different income tax rate or band.

The amount you can earn in a tax year without paying tax is called your Personal Allowance. You’ll only pay tax on income over that allowance. The Personal Allowance drops by £1 for every £2 of income above £100,000. There is no Personal Allowance where income is higher than £125,140. Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance.

Tax will normally be taken off and paid to HMRC by your pension provider before you receive your income.

We use the tax code we get from HMRC to work out how much tax to deduct from your pension.

You can buy our Pension Annuity or Cash-Out Retirement Plan directly from us. If you have your Phoenix Life fund value and you know what you want, you can get a quote online.

Alternatively if your pension has a Guaranteed Annuity Rate (GAR), Guaranteed Minimum Pension (GMP) or other guaranteed annuity option, you should contact us on 0800 316 3062 for a quote and, where appropriate, an application pack.

It’s important to shop around and get as much guidance and advice as you can before you make any decisions about what's best for you. A financial adviser will be able to help you explore all your options.

If you have a Guaranteed Annuity Rate with Phoenix Life, you can use this when buying a Legal & General Pension Annuity that has not been enhanced based on your health risks or medical conditions.

You won't be able to use a Guaranteed Annuity Rate if you choose to buy a Cash-Out Retirement Plan.

The retirement pack sent to you by Phoenix Life explains a bit more about this guarantee.

Your income will normally be paid into your UK bank or building society account. You must be named as either the account holder or joint account holder. All payments will be made in British pounds sterling (GBP).

We can arrange for payments to be made to an overseas account if requested, but there will be a charge for converting your payment from sterling to the required currency. The charge will be deducted from each payment instalment.

If you apply for our Pension Annuity, you have 30 days from the date you receive our confirmation that your annuity has started to change your mind. If you don't cancel within this period, you won't be able to cancel at a later date or change your annuity payments. If you do decide to cancel, you'll need to return any annuity payments we've made to you.

If you apply for our Cash-Out Retirement Plan, you have 30 days from the date you receive our confirmation that your plan has started to change your mind. If we’ve paid you any income, you’ll need to return this to us.

Please refer to the product Key Features and Terms and Conditions for more information.

To cancel either plan you should write to us at:

Legal & General Retirement
PO Box 809
Cardiff
CF24 0YL

You don’t need to do anything at the end of your plan. When it reaches its end date it will close and no further payments will be made. We’ll write to you confirming that your plan has closed.

If you don’t have any other source of income or savings, or you feel you need help, we strongly recommend you seek guidance and advice.

Pension Annuity

If you've selected a dependant’s income on your Pension Annuity, we’ll continue to pay income to your surviving spouse, registered civil partner or financially dependent partner for the rest of their life. If you’ve selected a guaranteed minimum payment period, we’ll continue to pay your income to your estate or any other person you specify until the end of your chosen period.

Cash-Out Retirement Plan

If you die before the end date of the plan, we'll continue to pay the income to your beneficiary, or to your estate, until the end of the plan term. Alternatively, they may be able to take the remaining income as a lump sum payment.