What is a Cash-Out Retirement Plan?
Give you a guaranteed income for a set period
Our Cash-Out Retirement Plan lets you use your pension pot to get regular income payments for between 3 and 25 years. It may be a tax-efficient way to withdraw your whole pension pot, rather than taking it all in one go or it may be a 'bridge' to see you through to a future date, when you're expecting another source of income to begin.
- Secure and guaranteed income
A guaranteed, regular income you can plan around with confidence.
Gives you control
You can choose the number of years you receive an income for and the amount, to suit your specific needs
We can pay you monthly, quarterly, half-yearly or yearly and either at the start (in advance) or at the end (in arrears) of the month or year
Manage your tax exposure
In most circumstances, it offers a more tax efficient way to take cash from your pension pot rather than taking it all in one go.
Supporting your dependants
If you should die during the term of the plan, we will continue to pay regular income payments to your beneficiary or estate until the end of the term of the plan.
Full details on these features are in the Key Features
- Am I eligible?
You must be aged between 55 and 85 and have at least £10,000 left in a pension pot to buy one after you’ve taken your tax-free cash.
I want to take the full pension pot as income
You can use this product to take your full pension pot as income, tax efficiently, over a set period of time. You don’t have to use your whole pension pot if you don’t want to though.
I want security from risks
Your income is guaranteed and is not affected by the performance of the investment markets or economy. Your income is guaranteed for the length of the plan.
- Tax-free cash
You can take up to 25% of your pension pot as tax-free cash. If you don’t take the tax-free cash at the start of your plan, you can’t take it later.
Payments will be taxed as income, which could affect any benefits you claim. The amount of tax you pay on income from the plan will depend on your circumstances, and may change based on your income tax rate.
When it's gone, it's gone
If you don’t have another source of income later, this may not be for you.
Mind out for inflation
You’ll get the same income every year. This means, with inflation, it may not buy as much in the future.
With security comes less flexibility
You won't be able to change the amount you get, but if your circumstances change you may be able to cash it in or transfer it to another pension product.
No options later
Unlike a Fixed Term Retirement Plan, you won't have a lump sum at the end, to make new choices later in life. Your income stops at the end of the plan.
Health risks not recognised
If you or your dependant has a health or lifestyle risk, a Pension Annuity, or products that take your health into account, may offer a higher income.
When you purchase our Cash-Out Retirement Plan, we aim to make the process simple, clear and jargon free. It can take as little as 15 minutes to get a personalised quote with us. You can save your quotes and come back later once you've shopped around. You can also complete your application online.
- Before you start
We'll run through some questions and considerations to make sure you're ready to get a quote online.
- About you and your pension pot
We'll ask some details about you and about any pensions you'd like to use to get a quote.
- Choosing a guaranteed income product
As well as getting a quote for our Cash-Out Retirement Plan, you can also quote for our Pension Annuity and Fixed Term Retirement Plan. You'll be able to get multiple quotes on different products to see how the different options affect your level of income.
- Get multiple quotes
You'll be able to select different options to see what income you could get and create multiple quotes to compare what these look like. Unless we tell you otherwise, the quote you choose is guaranteed for 40 days.
- Shop around
It's important to shop around and get as much guidance and advice as you need before you make any decisions.
- Buying a Cash-Out Retirment Plan
When you're ready you can apply online for the product using the guaranteed quote you saved previously.
Ready for a personalised quote?
If you know what you want and have your paperwork to hand, it only takes about 15 minutes to get an online quote.
If you're 50 or over, you should consider having a free Pension Wise appointment, before you decide how to access your pension.
Retirement income products compared
|Pension Annuity||Fixed Term Retirement Plan||Cash-Out Retirement Plan||Flexible income (Pension Drawdown)|
|Can it provide a regular pension income?||Yes||Yes||Yes||Yes|
|Can I choose a guaranteed income each month?||Yes||Yes||Yes||No|
|Is my income guaranteed to last my whole life?||Yes||No||No||No|
|Can I change how much I get?||No||No||No||Yes|
|Am I exposed to market movements, up or down?||No||No||No||Yes|
|Actions||Find out more||Find out more||Find out more|
Now that you’ve learnt more about our Cash-Out Retirement Plan, why not look at other products available as part of your shopping around. Other providers may have more appropriate products or be able to offer a higher level of retirement income.
Need some help?
Making well-informed decisions about how to finance your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy:
Pension Wise from MoneyHelper
The government’s free and impartial service, offering guidance to make money and pension choices clearer.
To find out more or book an appointment online click below or call.
0800 100 166
8am to 8pm, Monday to Friday.
Calls may be recorded and monitored.
Speak to us
Our colleagues in Cardiff are always happy to answer your questions or help you apply for a quote.
0800 048 2446
Monday to Friday
9am to 5pm
We may record and monitor calls.
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