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How can I take some of my retirement pot as cash?

Key points:

  • This article lists your options 
  • It explains the rules around making cash withdrawals as a self-managed option 
  • It also tells you how to make the cash withdrawals (screen by screen guide)
  • The article also explains what happens when you request a withdrawal

What are my options for taking some of my pot as cash?

You may have two options for taking some of your retirement pot as cash while continuing to save with Nest:

  • Self-managed option: read on for further details 
  • The Nest Guided Retirement Fund: you may be eligible to join this fund. For more information, visit Nest Guided Retirement Fund 

What are the rules around making the withdrawals as a self-managed option?

  • You have to be 55 or over.
  • If you’ve got less than £3,000 in your pot, you can only take the full amount.
  • If you have more than £3,000, you can make partial withdrawals.
  1. You can make one withdrawal every calendar month.
  2. The minimum amount you can take at a time is £200, and you must leave a balance of at least £2,000 after each withdrawal.

How do I start making cash withdrawals?

  • The quickest and easiest way to start making withdrawals is by logging into your online account.
  • Alternatively, you could call us on 0300 020 0090 to get started.

Screen by screen guide for taking some of your retirement pot as cash

After logging in click ‘Take your money out’ on your home page.

You’ll be able to see some of the details we hold for you on your account such as your name, address and NI number. Please check if these details are correct on your account before continuing with taking your money out. To begin, you’ll need to confirm Yes or No to the statement underneath your details. We’ll need to know if the total value of all your pension pots including Nest, exceed the standard lifetime allowance. For the 2020/21 tax year, this is £1.0731 million. If you confirm Yes please follow the instructions and contact us by phone.

  • Click ‘Your options for taking money out’ to select one of the options to take your money out of Nest.

  • Click ‘View your self-managed options’ to explore your cash withdrawal options.

  • Click ‘Take some of your pot’.

  • Enter the amount you want to withdraw and click ‘Calculate’. This will show you the estimated amount you’ll receive in your bank account after deducting tax.

  • Click ‘Continue’ to proceed and confirm the bank account details.

We'll need your bank or building society account details. We can only make payment to a valid UK account that's held in your name. 

If you've made a previous withdrawal from Nest, we'll show details of the account we paid onscreen for you to check. You can change these to a different account if you want to.
 

What happens once I’ve requested a withdrawal?

  • Once you have submitted your request, to protect your Nest pot we send your details over a secure link to Experian to help check your identity. This won't affect your credit rating or any future credit searches.
  • You should receive the payment within 5 – 10 working days once we’ve received the required information or if we don’t need any further details. 
  • We’ll send you a P60 statement after the tax year is completed if you’ve taken some of your pot as cash.
  • Your Nest account will stay open and you can continue to save with us.
  • If you’ve taken some of your pot as cash and later claimed your full Nest retirement pot or transferred out before your P60 is issued at the end of the tax year, then we’ll send you both a P60 and a P45 statement.
  • Once you’ve taken money from your Nest account you won’t be able to pay more than £4,000 in the current tax year into any defined contribution pension scheme without paying extra tax.

Sometimes we may need to ask you for proof of identification and/or bank account ownership to verify your request. This is also to ensure your pot is protected and only the rightful owner gets access to the cash. To see more information on sending documents to Nest, please see What evidence do I need to provide to take my money out of Nest?

To avoid postal delays, please use your Nest secure mailbox to send documents to us electronically. We can’t accept copies of birth, death, marriage or civil partnership certificates. If you are sending one of these documents, you’ll need to send the original document by post.

To send us documents via your Nest secure mailbox: 

  • Login to your Nest account and click ‘Mailbox’.
  • Click ‘Compose message or chat’ and then click ‘Compose message’.
  • Enter the subject, message type and the text of your message in the Your message field.
  • Click ‘Attach file’ at the bottom of the message to upload your document. You’ll need to send separate emails from your Nest secure mailbox for each of your attachments.
  • Once complete, click ‘Send’.

When using your Nest mailbox: 

  • Ensure the attachment file size doesn’t exceed 2 MB. Find out more about how to resize your image file.
  • Don’t compress or zip the files.
  • Only .jpeg, .gif, .tiff, .doc, .docx, .xls, .xlsx and .pdf file types can be accepted.

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