Personal Pension features and benefits | Scottish Widows Extranet

Eligibility

Aged under 75
Either resident in the UK or
- A Crown employee, spouse or registered civil partner of a Crown employee
- Not resident in the UK but have earnings which are chargeable to UK income tax
£150 monthly investment

The value of the plan can be used to provide a taxable income either by
- Buying an annuity
- Transferring into an income drawdown plan
Up to 25% of the plan value can be taken as tax-free cash in return for a smaller income
Income can normally be taken from age 55
Income can be taken in stages over a period of time
The value of the plan must be used to purchase an annuity, or transfer to another pension arrangement before age 75

Tax efficient retirement plan, with flexibility and potential returns
The value of your client's plan will be used to provide a taxable income either from us or another pension provider
Can take up to 25% of the plan value as cash, currently tax-free in return for a smaller income
Lifestyle switching 5 years before retirement

Monthly, yearly and single payments available
Regular payment £150 gross per month/£1,800 gross per year
Single payment £5,000, or £600 gross if paid in addition to regular and no minimum if paid in addition to regular at the outset
Minimum increment payment £20 gross per month/£240 gross per year
No maximum limit on payments that can be made each year
However, limits do apply to the amount of tax relief available

3 lifestyle options: Cautious, Balanced and Opportunity
With a choice of funds with varying aims and investment risk
Single manager and tracker funds managed by Scottish Widows Investment Partnership (SWIP)
Carefully selected funds managed by external fund managers
Multi-manager funds run in association with SWIP
Payments are used to buy units in the chosen investment funds. The value of the plan is based on the number of units
Wide range of unit-linked investment funds and a unitised with-profits fund
Ability to invest in 10 funds any one time
We may change the selection of funds that we make available and there may be restrictions on the amount that can be invested in certain funds

Ability to switch funds
Switching between funds is currently free
Lifestyle switching is available but must be chosen at outset
Ability to set up regular switching in advance
Unless instructed; funds will be switched gradually over 5 years before the retirement date so that 75% is invested in the Pension Protector Fund and 25% in the Cash Fund
Unable to switch into the unitised with-profits fund in the 5 years before the retirement date
There may be a delay in certain circumstances, and potential charges and conditions could apply

Basic rate tax relief on the regular and single payments made
Each year, tax relief is available on payments that don't exceed your relevant UK earnings (or £3,600 if higher)
Higher-rate and additional tax payers can claim additional tax relief via their self-assessment tax return
Any payments made that are not eligible for tax relief will be refunded
No tax relief on payments made by an employer or transfer payments
Income from the proceeds of the plan will be taxed in payment
If your client takes a cash-free sum when they retire it’s usually tax free
If your client dies before they retire, no inheritance tax will be payable on the value of the plan (normally)
Any dependants' income will be liable to income tax
Pensions investment funds are generally free of UK income or capital gains tax
Tax deducted at source from dividends of UK company share cannot be reclaimed
Tax charges will normally apply if the Government’s annual allowance or lifetime allowance is exceeded
Tax treatment depends on the individual circumstances of your client, which may be subject to change in the future
This information is based on the assumption that tax legislation is not changed. Tax rules can change

Value of the plan can go up as well as down, depending on market conditions
There may be a delay in transferring the value of the plan or switching between investment funds in certain circumstances
If your client cancels the plan within 30 days they may get back less than the initial amount invested
Your client may get back less than that illustrated if: not all the payments are made, investment performance is lower than illustrated, charges are higher than illustrated, tax rules change or the cost of buying the annuity is higher
Past performance is not a reliable indicator of future performance