You can start to take money from YIP when you reach retirement age.

The Normal Retirement Age for YIP will be aligned with the State Pension Age, unless you instruct that this should be different – for example if you have a contractual retirement age agreed with your employer.

When you reach retirement age you can choose to take a one-off tax-free pension commencement lump sum of up to 30% of your pension pot value. This will generally be paid tax-free however there are maximum limits under the law and so if your pension is significant in value, you may have to pay tax on the surplus paid above the maximum limit. This lump sum is optional however and so you can choose not to take it.

You can then start to receive your regular income payments from your pension. These are generally paid subject to 20% income tax that will be withheld at source, however there may be exceptions to this subject to personal circumstances.

The amount of income you are entitled to will be calculated using actuarial rates and taking account of your age and the total amount you have in your pension. This review and calculation will be undertaken on a regular basis to ensure it remains appropriate, typically every three years until you attain age 75 and then every year thereafter.

It is not possible to take a full withdrawal of the total amount of your pension pot value from YIP, besides for very specific circumstances such as serious ill-health.