Guide · 2025-11-12
Drawing a pension while still earning: what UK rules allow
Many clients ask whether they can take income from a defined contribution pot before fully stopping work. Here is how the current UK framework typically applies.
pensions retirement
Taking money from a personal or workplace defined contribution pension while you still receive a salary is permitted under UK rules for most people who have reached the normal minimum pension age — currently fifty-five, rising to fifty-seven from 2028.
The practical question is rarely whether it is allowed; it is whether early withdrawals leave enough for later decades, and how tax is applied on the taxable portion once the tax-free cash allowance is used.
Before any withdrawal, we ask clients to confirm scheme rules, protected tax-free cash entitlements, and whether taking income would trigger the Money Purchase Annual Allowance, which can restrict future contributions.
A short cashflow sketch — salary continuing for three to five years alongside a modest draw — often shows whether the plan is comfortable or whether waiting a little longer preserves more flexibility.
If you are considering this step, bring recent pension statements and a note of expected salary for the next two tax years to your next meeting. That is enough for a grounded conversation without committing to a withdrawal.