What is Pension Wise?

Pension Wise is run by MoneyHelper on behalf of the government. It helps you understand what you can do with a defined contribution pension pot — such as workplace or personal pensions where the value depends on contributions and investment returns — when you reach age 55 (rising to 57 from 2028).

Appointments cover the main options: leaving money invested (drawdown), buying an annuity, taking tax-free cash, and mixing approaches. The specialist explains tax implications, including that only 25% is usually tax-free and the rest is taxed as income, and how your choices interact with the State Pension and other income.

Pension Wise does not recommend specific products or tell you what to do — that is regulated financial advice, which you would pay an adviser for. Before accessing flexible pension money, providers must ensure you have either received Pension Wise guidance or opted out of it in favour of regulated advice.

Book free on gov.uk or by phone. Prepare your pension statements, an idea of other income and debts, and questions about inheritance tax or continuing to work. For complex situations — large pots, defined benefit transfers, or intricate tax planning — consider paid advice from an FCA-regulated adviser after your Pension Wise session.