Retirement options

There are several different ways of using your Account when you reach retirement

Which retirement option is best for you will depend on what other pensions or savings you have, how much you want to live off, and how much security you want from your retirement income.

If you would like the security of a predictable monthly income, you can use your Account to buy an annuity. This is an income for life provided by an insurer. There are lots of different annuities available, offered by a range of different providers. You can find out more about annuities here.

If you want to generate an income from investments or have other pensions and savings that mean you are not relying just on your AXA pension, then you can keep investing your Account and take money from it over the course of your retirement. This is known as income drawdown and you can find out more about it here.

Alternatively, you could just take your Account as cash. It’s important to think about the potential tax implications of this and whether you’ll still have enough money to support yourself in retirement. Read more about this option here.

Whatever option you choose, you can take up to 25% of the value of your Account as a tax-free cash lump sum. The rest of your money is taxed as income as you receive it. You can also choose a mix of the options – for example buying an annuity with some of your Account and using the rest for drawdown.


This section explains what to expect when you reach retirement and how to plan for it.

Find out more