From 23 June 2025, we introduced new retirement options at Smart Pension, giving you more choice and flexibility over how you take your pension savings in retirement.
This article helps break down complicated and unfamiliar terms about retirement and the options available. We’ve also created short videos to help make your retirement journey as easy to understand as possible.
For more detailed information about your new choices at retirement and the options available at Smart Pension, please refer to our retirement options guide, or our accessing your pension savings help article.
Breaking down the jargon
Tax and pension savings
Explore your options when it comes to accessing your pension savings, and find out about the taxes you can expect to pay on your retirement income.
Tax in retirement
Watch below to learn how each retirement option comes with its own tax considerations, depending on your personal circumstances.
Crystallised funds
When you cash in your personal pension either through drawdown or an annuity, it becomes crystallised.
Uncrystallised funds
The part of your pension you haven't yet accessed.
State Pension
A regular payment from the government once you’ve reached the state pension age.
Drawdown
A flexible way to access your pension savings in retirement, taking money from your pension savings as and when you need it.
Annuity
At retirement, you can cash in your pension to buy an annuity, which will pay you a guaranteed income, either for a fixed period or for the rest of your life.
Cash
You can take your pension as cash, but there are important factors to consider. Discover how much you can take tax-free, the tax on amounts over 25%, and the risk of running out of money in retirement.