Retirement Options Guide

/Retirement Options Guide
Retirement Options Guide 2017-11-28T19:20:38+00:00
  • Regular and secure income for life
  • Tax free cash provided at outset and fund used to purchase an annuity paid for life.
  • Your annuity income is paid at least annually and can increase or remain level in payment.
  • Additional options can be selected at outset such as annual increases, spouse’s benefits or guarantees which reduce your own income.
  • Once you have bought your annuity, you usually cannot change your mind or change benefits. On death there may also be the option of a capital payment less tax.
  • Regular and secure income for life
  • Tax free cash paid at outset and fund used to provide income for life.
  • Your annuity income is paid at least annually and can increase or remain level in payment.
  • Additional options may be offered at outset such as annual increases, spouse’s benefits or guarantees which reduce your own income.
  • Pension income paid directly by scheme. Once in payment you cannot change your mind or change the benefits.
  • Part of your fund and part of your tax free cash are used in segments to provide income.
  • The balance of the fund not used for income / tax free cash remains invested with a view to providing higher future benefits.
  • Your starting annuity is smaller, but is supplemented by a portion of your tax-free cash sum.
  • Each year you decide how much fund to use for annuity purchase and how much tax free cash is used to supplement your income.
  • Because you don’t commit all your funds to buy an annuity immediately, you keep your options open.
  • Tax free cash lump sum paid at outset and fund remains invested.  Income can also be selected if required.
  • The balance of the fund not used for income remains invested with a view to providing higher future benefits.
  • You can choose the income you want, and when you want it, between nil and 120% of an equivalent single life annuity.
  • If investments do well, you may benefit from higher future income payments, and vice versa.
  • On death, the remaining fund is available to pay benefits to your family or dependants.
  • Tax free cash lump sum paid at outset and residual fund (subject to income tax) can be accessed immediately.
  • Immediate access to the entire fund.
  • No maximum withdrawal. Must prove a ‘secured’ fixed pension income of at least £20,000 pa from other pension sources.
  • If the entire plan benefits have been taken, there is no further payment on death.
  • If the individual chose to access only some of the funds, remaining options on death (as under capped) remain an option.
  • Tax free cash lump sum paid at outset and fund remains invested.  Income can also be selected if required.
  • The balance of the fund not used for income remains invested with a view to providing higher future benefits
  • You can choose the income you want, and when you want it, in line with drawdown – some plans offer an income ‘lock in’ guarantee.
  • If investments do well, you may benefit from higher future income payments. Some plans offer an investment growth ‘lock in’ guarantee.
  • On death, the remaining fund is available to pay benefits to your family or dependants, depending on plan type sele