Taking Pension Benefits

You may start to draw your benefits from age 55, unless you have to retire because of serious ill-health when benefits may be taken earlier.  You can if you wish defer drawing your benefits for an indefinite period.

You can purchase a pension on either a single or joint basis with your spouse/civil partner and/or a pension that increases each year during payment. Pensions may be guaranteed to pay for either five or ten years, irrespective of when you die and are subject to income tax through the PAYE system. Alternatively, you may choose to take withdrawals directly from your fund for an indefinite period by transferring to Income Drawdown i.e. you do not have to purchase an annuity.

When you decide to take the benefits you will be able to take a lump sum that is currently tax-free and is 25% of the accumulated fund value.  The residual amount of 75% can then be used to purchase a pension income.

Please contact us for further information.