From 6 April 2015, those aged 55 can access as much of their defined contributions pension savings as they wish. The guidance sets out the three main options available, namely, lifetime annuity; flexi-access drawdown; and a lump sum payment, which can be used on their own, or in combination.

According to the guidance, all payments from an annuity or drawdown, and 75% of the amount of any uncrystallised funds pension lump sum, are taxable as income and the amount of tax to pay will depend on the amount of payments that are received in the tax year plus any other taxable income.

The guidance is available here https://www.gov.uk/government/publications/pension-flexibility-new-options-from-6-april-2015/pension-flexibility-new-options-from-6-april-2015