We will write to inform you of your options prior to your intended retirement date as these could be subject to change, either by Government announcement or by our choice.
You can take up to 25% of the Plan value as a tax-free lump sum and use the balance to buy a policy that gives you a guaranteed income for life (known as a lifetime annuity) from an annuity provider. This is known as the Open Market Option.
We also offer you the option to take the Plan value as a cash lump sum, either in full or in parts.
If you choose to take partial lump sum payments from your pension fund you will also be able to continue paying into it if you want to, up to the Money Purchase Annual Allowance. For details of the current Money Purchase Annual Allowance please refer to the Pension Factsheet.
Both the pension option and cash lump sum payment options will be taxable as earned income.
You also have the option to transfer your entire fund, free of charge, to another pension provider. This may be beneficial if you can obtain better pension rates elsewhere or if you wish to take advantage of the wider range of pension options available in the marketplace.
A full range of the options that can be offered by pension providers can be found on the Government's Pension Wise website.