Through the Plan
If you want to take your savings as cash, or buy an Annuity you can do this through the Plan.
Take your savings as a single Cash Lump Sum.
Buy an Annuity
Up to 25% tax-free cash
You can take all your retirement savings, including any Additional Voluntary Contributions (AVCs) you might have, as a Cash Lump Sum at retirement. 25% will be as tax-free cash and you will be taxed at your marginal rate on the rest and remember, you will be taxed at your marginal rate on the rest if you choose to take a lump sum at retirement
You can buy an Annuity at retirement through the Plan’s provider, Aviva. If you decide a different Annuity might better suit your retirement plans, you can buy your preferred Annuity from another provider by using the Open Market.
You will receive more information on this when you are six months from retirement.
Transfer out of the Plan
If you want to use Income Drawdown or take your retirement cash savings as a series of lump sums you will need to transfer your retirement savings out of the Plan into a different pension policy (this can either be with Aviva or to a provider of your choice).
Take your savings as a series of Cash Lump Sums or choose Income Drawdown
Up to 25% tax-free cash
You can take all your retirement savings, including any Additional Voluntary Contributions (AVCs) you might have, as a series of Cash Lump Sums at retirement. 25% of each lump sum will be tax free, and you will be taxed at your marginal rate on the rest. Remember, you may find that taking a Cash Lump Sum could push you into a higher tax bracket.
As well as having the option to take your retirement savings as cash, or buying an Annuity, you will have the option of using Income Drawdown. Under this you can access your savings flexibly, drawing down cash as and when you need it or at regular intervals, keeping the remaining savings invested.
Make sure that you consider any pensions you hold with other providers before making any retirement decisions. You may want to consider seeking financial advice on your options (such as consolidating them in one place).