Cash-Out Retirement Plan
People have different income needs throughout their retirement and may have multiple sources of income coming in at different times too. So they may need to consider what is available to support them for a specific time period until another source of income starts, creating a plan for the long term.
Our Cash-Out Retirement Plan is a fixed term product that pays your clients a set regular income over a chosen period of time from their pension pot, and doesn't include a maturity value.
- Your client's pension arrangement is transferred to us and we pay them their tax-free cash and pay a regular income over a a set term.
- They can choose a term between 3 and 40 years (limited to a maximum term of 25 years for non-advised transactions).
- They can choose payment frequencies to be monthly, quarterly, half yearly or yearly; in advance or in arrears.
Cash-Out Retirement Plan is available for clients who:
- Are aged 55 and over.
- Want to know exactly how much income they will receive and when.
- Want to take a pension pot as cash over several years to maximise tax efficiency.
- Have a minimum amount of £10,000, after any tax-free cash and adviser charge, if applicable.
Cash-Out Retirement Plan can help to:
- Provide an income until another source, such as a final salary pension, starts.
- Supplement their income if your client wants to reduce their working hours.
- Increase their income, for example, to help fund travel and enjoy retirement.
- Allow your client to defer taking their State Pension, so the payments received when they do take it, are higher.
- Lets clients choose the option to include a death benefit so any income will continue to be paid in the event of their death.
- If your client chooses a guaranteed minimum payment period to apply for the full term of the plan, they will now have the option to cash in the value of their plan at any time throughout the term or transfer to another registered scheme.
- The cash in value is calculated by giving a present day value of future income payments due.
- It's important to note that the cash in or transfer value will always be less than the remaining payments due over the term of the plan.
- To maximise tax efficiency of full pension fund withdrawals.
Once the term of your client's plan comes to an end, you client will receive no more income from us. There is no maturity value and there will be no other payments made. The plan does not pay income for life.
Case study tool
Use our retirement income case study tool with your clients to illustrate a range of different scenarios which are most relevant to their circumstances.