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.
Options to support your dependants
You can choose to have your income paid to a loved one, in the event you die during 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.
Do you have any missing pensions?
Before you make any decisions about your retirement income, you might want to consider other pensions you may have, including any from previous employers. Using our consolidation service, we can track down pensions and combine them to one retirement product.
|Guaranteed income (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 risks, 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.
The Government’s impartial retirement guidance will help you avoid the risks and think about what’s right for you.
Speak with us
Our colleagues in Cardiff are always happy to help with your questions or to help you apply for a quote.
0800 048 2446
Monday to Friday
9am to 5pm
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