Eligibility
- No minimum age
- Maximum age 74
- UK resident
Income choices
- Designate into Retirement Account from Retirement Income
- Conventional annuity
- Transfer out
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 provide an annuity by age 75 or transfer to another pension provider..
Features
- It is an appropriate personal pension policy which can have two elements, Retirement Planning and Retirement Income
- Basic-rate tax relief is applied immediately to payments into Retirement Planning
- Charges are unbundled, helping make it easier for your clients to understand costs
- Adviser payment options are designed to meet most business models, including the option to take fund-based remuneration on the value of all assets
- Our online services offer you access to illustrations and applications, as well as daily valuations
- Ability to buy, sell and switch most investments online
- Your client can view their Retirement Account online
Servicing
- Dedicated customer service team with direct telephone(s) and e-mail address(s)
Contributions
Minimum contributions are
- £200 monthly gross*
- £2,400 annual gross*
- £10,000 single premium
- £10,000 transfer
*All regular contributions paid by Direct Debit
Reporting
- Annual statements
- Online valuations in real time
- Full consolidated value of whole plan
Tax
- Basic-rate tax relief on regular and single payments
- Each year relief is available on payments that don’t exceed your clients’ relevant UK earnings (or £3,600, if higher)
- Higher-rate and additional tax payers can claim additional tax relief via a self-assessment tax return
- Any payments made which are not eligible for tax relief will be refunded
- No tax relief on payments made by an employer or transfer payments
- 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
- Pension investment funds are generally free of UK income and capital gains tax. However, it’s not possible to reclaim tax deducted at source from the dividends of UK companies
- 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 and may be subject to change in the future
- This information is based on current tax legislation, which can change
Risks
- Past performance is not a reliable indicator of future results
- Each investment fund has different risks associated with it
- 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 met, investment performance is lower, charges are higher, tax rules change or the cost of buying their pension is higher
Death benefits
- Return of fund normally tax free
- Dependants’ pension
- Payable to trustees if individual trust set up
