Retirement
The pension arrangements we operate are extremely flexible and offer a wide choice of retirement options. There is no requirement to decide at outset what option you are going to take, and you can leave this until the point of commencing to draw benefits. In a number of instances you can even change your mind after your retirement benefits have commenced.
You do not have to stop working to start drawing retirement benefits, and can phase-in your benefits over a number of years while you gradually reduce the amount you work.
This flexibility allows you to choose the most tax efficient retirement option to suit your needs.
We always strongly suggest you take advice from a professional financial adviser before commencing retirement benefits.
The range of retirement options available to you from our pension arrangements can briefly be summarised as follows:
- Minimum retirement age 55.
- Early retirement on ill health grounds is permitted.
- Tax free cash lump sum of 25% of your fund value. This must be paid by age 75.
- The balance of the fund must be used to pay a pension, which is subject to income tax but not National Insurance.
- The pension can be paid by purchasing an annuity.
- Alternatively the pension can be paid from the fund. This is called Income Drawdown. Before the age of 77, income drawdown is technically known as "Unsecured Pension". For those who reached age 75 before 22nd June 2010 Unsecured Pension could only be paid until their 75th birthday.
- Income drawdown has set limits but is very flexible and can be varied each year.
- It even allows you to take your tax free lump sum but no pension.
- Income drawdown can be paid monthly, quarterly, half-yearly, or annually, in advance or in arrears.
- Income drawdown must be reviewed every five years, but you can request a review at any pension anniversary.
- From age 77 (75 for those reaching 75 before 22nd June 2010) the income drawdown limits change. This is called "Alternatively Secured Pension", and has a lower maximum and higher minimum pension and must be reviewed every year.
- Our SSAS and Family SIPP products have another income drawdown pension option called "Scheme Pension", which may permit a higher level of pension to be drawn and may be suitable for some individuals. It can only be selected where you have been offered the option of an annuity, and must not be seen as a device to avoid tax on death.
- You can choose to take "phased retirement" where you commence taking benefits from part of your fund only, leaving the balance for a later date.
For the benefit options available when you die, please see our separate section covering death.
For more details on retirement options, please read our Guideline on Retirement Benefits.
To commence drawing retirement benefits, please complete and return our Benefit Request Form.
To commence drawing scheme pensions, please refer to a Financial Advisor in the first instance. You will also need to complete a Scheme Pension Questionnaire.
