UK Pension Wise (2026/27): Free Pension Guidance
Pension Wise in 2026/27: free, impartial guidance on your defined contribution pension options, who can book, the FCA nudge, and guidance vs regulated advice.
What Pension Wise guidance covers
| Topic | Detail |
|---|---|
| Your options for a defined contribution pot | Leaving it invested, buying an annuity, flexi-access drawdown, taking lump sums (UFPLS), or cashing in the whole pot, and how each works |
| Tax-free cash | Normally up to 25% of the pot, within the £268,275 Lump Sum Allowance unless you hold a protection |
| Income Tax | How the taxable part of a withdrawal is taxed as income, and why a large withdrawal in one year can push you into a higher band |
| Future contributions | How taking taxable money flexibly triggers the Money Purchase Annual Allowance of £10,000 for 2026/27 |
| Other things to weigh | State Pension, other income, health, dependants, means-tested benefits, and the April 2027 change bringing most unused pension funds into Inheritance Tax |
| Scams | Warning signs of pension scams and how to check a firm is authorised |
Book through MoneyHelper, which sets out the current appointment formats and contact details.
Guidance vs regulated advice
Pension Wise (guidance)
- Free and impartial
- Explains options; does not recommend products or providers
- You remain responsible for the decision
- For defined contribution pensions
Regulated financial adviser
- Charges a fee
- Gives a personal recommendation and is responsible for its suitability
- Authorised by the FCA (check the Financial Services Register)
- Required by law before transferring a defined benefit pension worth more than £30,000
When to use Pension Wise
- Before taking money from a defined contribution pot - your provider must offer to book guidance at that point anyway (FCA COBS 19.7).
- When your provider sends an open market options statement - due within two months after you turn 50 and before each fifth birthday after that.
- Before consolidating pots - moving a pot can lose guarantees such as a guaranteed annuity rate. See the pension consolidation guide.
- If someone contacts you out of the blue about your pension - get impartial guidance before you act.
Related guides
- UK Pension Drawdown Strategies 2026/27 - drawdown, UFPLS and annuities.
- UK Pension 25% PCLS Guide - tax-free lump sum mechanics.
- UK IHT on Pensions April 2027 - estate planning implications.
- UK Triple Lock State Pension 2026/27 - State Pension forecasting.
- Pension Tax Relief Guide - contribution and relief mechanics.
Frequently asked questions
Who can use Pension Wise?
Pension Wise is the free guidance service from MoneyHelper for people with a defined contribution (money purchase) pension. GOV.UK says that if you are over 50 you can book an appointment to speak to someone. Its legal basis is the pensions guidance function of the Money and Pensions Service, which must provide free and impartial guidance and help people decide what to do with their flexible pension benefits (Financial Guidance and Claims Act 2018 ss.3 and 4).
What does Pension Wise do, and what does it not do?
It gives guidance, not advice. A specialist explains the options for your defined contribution pot, the tax that applies and the points to weigh, using your own circumstances. It does not recommend a product, a provider or a particular course of action, and it does not take responsibility for your decision. A personal recommendation needs a regulated financial adviser.
What is the FCA stronger nudge to pensions guidance?
Since 1 June 2022 FCA rules (COBS 19.7) require a pension provider, once a customer has decided in principle how to access their pension savings, to explain the nature and purpose of pensions guidance and offer to book an appointment. The provider must then check whether the customer received guidance or regulated advice, or confirmed they want to opt out, before going ahead. The rules treat discouraging someone from taking guidance as likely to breach the Consumer Duty.
When is a good time to book?
Before you take any money out, transfer or consolidate pots, or reply to an unsolicited offer about your pension. Providers must send an open market options statement within two months after you reach 50 and before each fifth birthday after that (FCA COBS 19.4.5A), which is a natural prompt. Remember that taking taxable money flexibly can cut what you can pay in with tax relief to £10,000 a year, so check the position first if you are still saving.
How does Pension Wise differ from regulated financial advice?
Pension Wise explains the options and is free. A regulated adviser recommends a course of action, is responsible for whether it is suitable, and charges a fee. For some decisions advice is a legal requirement: you must take regulated advice before transferring a defined benefit pension worth more than £30,000 (FCA). For complex situations, such as large pots, guarantees or Inheritance Tax planning, advice is often worth considering.
What should I have ready for the appointment?
Recent statements for each defined contribution pension, your State Pension forecast (from GOV.UK), details of any defined benefit pension, and a note of your other income and savings. If you have lost track of a pension, the GOV.UK pension tracing service can help you find contact details for the scheme first.
Will Pension Wise tell me whether to cash in my pension?
No. It will explain what happens under each option, including the tax on taking a large amount at once, the effect on future contributions and the risk of scams, but the decision is yours. If you want a recommendation on whether to buy an annuity, use drawdown or take cash, you need regulated advice.