Secure Income with no Pension Savings or investments in Pension Drawdown

You can choose to have your Secure Income converted into a Canada Life Lifetime Annuity instead of moving to the new Canada Life Drawdown account. If your Secure Income is converted:

• Canada Life will continue making the income payments 
• The income will be paid directly to you rather than into a pension account 
• Income tax will be deducted where applicable 
• You will no longer be able to leave or invest the income within a pension account in the same way 

Conversion changes how you receive your existing Secure Income. It does not mean that any pension investments are being used to buy a new annuity.

The change may affect your tax position, available income, dependants or beneficiaries and wider retirement plans. It may also be difficult or impossible to reverse.

We strongly recommend speaking with a financial adviser before choosing this option.

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You may be able to transfer to the Parmenion SIPP instead of moving to the new Canada Life Drawdown account. If you choose this option:

• A financial adviser will need to advise on and arrange the transfer 
• The adviser’s firm will need to complete Parmenion’s requirements 
• Parmenion’s platform, SIPP and investment charges will apply 
• Canada Life will continue making your Secure Income payments gross of any income tax into the Parmenion SIPP 
• You will need an ongoing relationship with a financial adviser to manage the Parmenion SIPP and make changes after the transfer 

https://www.canadalife.co.uk/customer/help-and-support/product-support/find-a-financial-adviser/Parmenion works with financial advisers rather than directly with customers when the account needs to be managed or changed.

Your financial adviser will need to consider the Parmenion SIPP’s charges, investment options and adviser-led service when assessing whether this option is right for you.

If you want to choose this option, speak to a financial adviser and begin the process early enough for Canada Life to receive any required instruction before the deadline shown in your letter.

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Secure Income is regular income bought within The Retirement Account. Canada Life pays it gross of any income tax into your Pension Drawdown account. 

A regular withdrawal is a separate payment made from your Pension Drawdown account to you. Income tax may be deducted from a regular withdrawal, where applicable. 

Under the planned move, Canada Life will continue making your Secure Income payments gross of any income tax into the new Canada Life Drawdown account. 

Your Account Summary shows: 

• The Secure Income information Canada Life held at the stated date 
• Whether Canada Life held a regular withdrawal instruction for you at that date 

Your letter and Customer Guide will confirm how any existing regular withdrawal instruction will be treated as part of the planned move.

The planned move is designed to keep disruption to a minimum. The following are expected to stay the same:

• Canada Life will continue making your Secure Income payments 
• Your Secure Income will continue to be paid gross of any income tax into your new drawdown account 
• You will be able to take money from the new account as you do today 
• Any existing regular withdrawal instruction will continue automatically 
• Your regular withdrawal amount, payment date, frequency and tax treatment are expected to stay the same 
• You will not need a financial adviser to manage your withdrawals or investments 

Your Account Summary shows the Secure Income and regular withdrawal information we held for you at the stated extract date.

The main changes are:

• Your Secure Income will be held in a new Canada Life Drawdown account. 
• You will receive a new account number. 
• You will use a new Canada Life online account to view and manage your pension. 
• The new account will have its own terms, conditions and charges. 

Canada Life will provide more information about the new account and how to use it. Your Customer Guide explains what is expected to stay the same and what will change in more detail.

You do not need a financial adviser for the planned move to the new Canada Life Drawdown account to go ahead, but you should consider speaking with a financial adviser if you are unsure about the planned move or want help understanding the other options available.

In particular:

• We strongly recommend taking financial advice before having Secure Income converted into a Canada Life Lifetime Annuity
• You will need a financial adviser to advise on and arrange a transfer to the Parmenion SIPP
• You will need an ongoing relationship with a financial adviser to manage the Parmenion SIPP and make changes after the transfer

If we hold financial adviser details for you, your Account Summary will show them. Please tell us if those details are wrong, no longer valid or have changed. If you do not have a financial adviser and decide you want one, you can use our Find a financial adviser page.

Some services and transactions may be temporarily unavailable before the planned move. Your letter and Customer Guide will explain the planned timetable. For the latest service-pause dates, affected services and transaction restrictions, check our online Support Hub before requesting a transaction or change.

Check current service information