The Inland Revenue has granted the deferred annuity and income drawdown facilities to Occupational Pension Schemes.
The new flexible pension options were announced on Tuesday.
Now occupational pension scheme holders will have the same retirement opportunities as their personal pension plan counterparts.
In a further move towards flexibility of occupational schemes the IR will allow the benefits from Additional Voluntary Contributions to be taken at any time between the ages of 50 and 75, regardless of whether the plan-holder has retired.
Economic secretary to the Treasury Patricia Hewitt says: "It is important that pension schemes should be able to adapt to changing employment patterns.
"These two changes to the tax approval rules are a move in that direction. They give people more control over how and when they will take the retirement income."