1. Leave your pension fund invested
Just because it’s an option, there’s no obligation to take any cash out or start drawing an income at 55.
If you want to – and especially if you’re still working – you can continue paying into your pension and making the most of the generous tax benefits.
If you’re not working, you can still pay a total of £3,600 gross a year into a pension scheme and qualify to have tax relief added to contributions. This means that, with the present tax rate, you would make a net payment of £2,880 and have £720 added in tax relief.