This is a defined contribution scheme which works like a normal investment account. The transfer value is invested under the new trust and you are liable for all fees and costs.
From age 55 (57 from 2028), you can start taking withdrawals, normally up to 25% tax free and the rest taxed as income.
You can take as much of your pension as you wish. You could choose to take the whole fund as cash in one go, smaller lump sums as and when you like, or a regular income (via drawdown or an annuity). Remember your pension may need to last throughout your retirement to maintain your standard of living.
- Drawdown allows variable withdrawals whilst remaining invested
- Annuity purchase exchanges all or part of your pension monies to an insurance company for a guaranteed income.
All withdrawals over the 25% tax free lump sum are subject to UK income tax.
A wide range of investments are allowed.
More flexible income and death benefit position may be available on transfer but you could suffer a loss of guarantees.
25% tax free lump sum.
You are liable for all costs and would take on investment risk.
Full fund available on death.