Lifetime Annuities & Scheme Pension

Also worth knowing

• Can I take tax-free cash?

  You may be able to take up to 25% of your existing pension fund as tax-free cash. However, if your pension monies are coming from a drawdown plan, you will have already taken your tax-free cash.

• What are my income payment options?

  Your income payments can:

  • Stay the same for the remainder of your lifetime
  • Increase by a fixed percentage every year; vary in line with the Retail Prices Index or vary in line with the Retail Prices Index but capped at 2.5% or 5%
  • Be paid into your bank account monthly, quarterly, half-yearly or yearly

• How is my income taxed?

  We’ll tax your income at your marginal rate once we receive a tax code from HMRC or you provide a valid P45 certificate. If we don’t receive this, we’ll apply a temporary, emergency tax code.

  The amount of income tax you pay will depend on your total income from all sources and your personal allowance.

• What happens to my income when I die?

  Your income will stop when you die, unless you have opted to include death benefits.

  The options are:

  • Guarantee payment period  - You can choose for your income to be guaranteed for a period of time (from 1 month to 30 years). If you die within the guarantee period, your chosen beneficiary(ies) will continue to receive your income until the guarantee period ends

  • Payments to a second annuitant - You can choose to provide an income for a second annuitant after your death. This can be at the same level or at a lower percentage, for example 50% of the amount paid to you

  • Annuity protection - You can choose to have a lump sum paid if you die before your 75^th birthday. This is a way of protecting your initial investment minus any income you’ve already received.

  If you die prior to your 75^th birthday, we’ll make tax-free lump sum payments or provide tax-free income to your beneficiary(ies). If you die after age 75, we’ll tax any payments at your beneficiary(ies) marginal rate of income tax.

• Do I need advice?

  As we don’t give personal recommendations on our products, you should speak to an adviser to help you decide if it’s right for you. To find an adviser local to you, please visit Unbiased