0 2 8 ) ▁with ▁private ▁p ensions , ▁where ▁they ▁and / or ▁their ▁employ ers ▁have ▁saved ▁up ▁a ▁pot ▁of ▁c ash ▁for ▁ret irement , ▁techn ically ▁known ▁as ▁a ▁" defined ▁contribution " ▁or ▁" m oney ▁purchase " ▁p ension ▁scheme . ▁The ▁new ▁rules ▁mean ▁that ▁ 2 5 % ▁of ▁the ▁ret irement ▁fund ▁can ▁be ▁taken ▁as ▁a ▁tax - free ▁l ump ▁sum , ▁and ▁the ▁rest ▁can ▁be ▁drawn ▁as ▁tax able ▁c ash , ▁used ▁to ▁buy ▁an ▁ann u ity , ▁used ▁to ▁buy ▁a ▁flexible ▁income ▁draw down ▁product ▁or ▁any ▁combination ▁of ▁these . ▁Before ▁making ▁a ▁choice , ▁everyone ▁has ▁a ▁new ▁right ▁to ▁free ▁and ▁im partial ▁guidance ▁at ▁ret irement ▁to ▁help ▁them ▁make ▁an ▁informed ▁decision ▁on ▁what ▁is ▁right ▁for ▁them . ▁ ▁See ▁also ▁ ▁Collect ive ▁invest ment ▁schemes ▁ ▁In come ▁draw down ▁ ▁P ensions ▁in ▁the ▁United ▁Kingdom ▁ ▁P ension ▁tax ▁simpl ification ▁ ▁Ret irement ▁ann u ity ▁plan ▁ ▁Self - inv ested ▁personal ▁p ension ▁ ▁St ake holder ▁p ension ▁scheme ▁ ▁Tax ation ▁in ▁the ▁United ▁Kingdom ▁ ▁References ▁ ▁External ▁links ▁BBC ▁P ension ▁Guide ▁State ▁P ension ▁Age ▁Calcul ator ▁ ▁Category : Person al ▁fin ance ▁Category : In vest ment ▁Category : P ensions ▁in ▁the ▁United ▁Kingdom ▁Category : 1 9 8 8 ▁establish ments ▁in ▁the ▁United ▁Kingdom ▁Category : T ax - adv ant aged