Taking benefits from an arrangement
Benefits can be taken as lump sums and annuities, or as pension drawdown, athough the exact make-up of the way you choose to take benefits is quite flexible, so most people should be able to arrange them to suit their particular needs.
Since April 2015, retirees have had greater freedom to choose how they access their pension savings. This includes being able to take lump sums without incurring a 55% tax charge on withdrawals above the 25% tax-free limit. Instead, withdrawals will be taxed at the person's marginal rate of income tax.
This is an area where it is essential that you discuss the options with your financial adviser several years before you expect to retire, or semi-retire. Planning in advance gives maximum flexibility.