Taking retirement income

There are a number of ways clients can take an income from their pension with us. They can enter into flexi-access drawdown and you have the ability to arrange automated regular crystallisations on their behalf. In addition, we support clients with existing capped drawdown arrangements as long as they remain within the income limits. Clients can also make UFPLS withdrawals and can receive small pots, ill health and serious ill health payments (subject to meeting the conditions for these payments).

Our pension is designed to offer value, choice and options at retirement with all the flexibility you require, including death benefit planning, and an extensive range of investment options.

Flexi-access drawdown is available to all pension clients (including phased drawdown). We also support clients with existing capped drawdown arrangements as long as they remain within the income limits.

We make no additional annual administration charges for clients in income drawdown, just the standard platform
fees.

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• Benefits at a glance
• Withdrawal options
• Investment options
• Flexible options on death (or in ill health)
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Clients have the following options for making withdrawals from our pension. 

Income drawdown

Flexi-access drawdown is available to all pension clients. They are able to take unlimited withdrawals up to the maximum value of their pension plan. Income can be taken as one-off, or as regular payments (monthly, quarterly, half yearly or annually). We also support clients with existing capped drawdown arrangements as long as they remain within the income limits. Clients can request to convert their arrangements to flexi-access drawdown with no additional costs.

Pension Commencement Lump Sum (PCLS)

Clients can take 25% of the amount being crystallised from their pension as a tax-free lump sum. Clients with protected tax-free cash rights may be able to take a higher percentage.

Phased drawdown

Your clients can also choose to enter into phased drawdown where their pension pot is crystallised monthly, quarterly, half yearly or annually based on the frequency chosen online. Phasing, or drip feeding into drawdown, is completed by partial crystallisations.

Uncrystallised Funds Pension Lumps Sums (UFPLS)

Clients also have the option of taking uncrystallised funds pension lump sums from our pension. The first 25% of every withdrawal is tax free.

Small pots

Clients are also able to take advantage of the rules relating to small pension pots. If their pension is valued at no more than £10,000, the whole amount can be withdrawn as a lump sum (assuming no more than two personal pension pots have previously been taken in this way). The first 25% of the lump sum will be tax free.

Taking a small pot does not trigger the client’s Money Purchase Annual Allowance.

Clients who stay invested post-retirement have access to over 5,500 investment options. These include a wide range of income investments such as bond, equity income and multi-asset income funds from a broad range of providers. It is also possible to hold cash within a pension account.

More on our investment range

The death benefits payable from a pension will depend on the client’s age when they die. Payments are at the trustee’s discretion, although they will carefully take account of the client’s Expression of Wish form. We offer flexible death benefit options, including nominee’s drawdown. Our Expression of Wish form includes nominee options.

Where the client is under the age of 75

The remaining pension account value can be:

• Paid out as a tax-free lump sum (subject to the Lifetime Allowance).
• Used to pay out tax-free income withdrawals to the beneficiary.
• Used to offer a combination of the above.

Where the client is over the age of 75

The remaining pension account value can be:

• Paid out as a lump sum subject to the beneficiary’s marginal rate of income tax.
• Used for income withdrawals, which will be taxable at the beneficiary’s marginal rate. 
• Used to offer a combination of the above.

The above descriptions apply where death benefits are paid or a designation is made within two years of us being notified of the customer’s death. Where benefits are paid or a designation is made after two years of us being notified, different conditions will apply.

Payment of serious ill health lump sum

If a client is suffering from a serious health condition, they may commute any pension held under the scheme and receive the entire benefit entitlement as a lump sum. This is possible where specific criteria are met and the condition is verified by a recognised health professional.