Read our most commonly asked questions about accessing your pension pot and buying a retirement income product.
Do I have to buy an annuity?
No, there are many different ways you can take your pension pot. More details about your pension options are provided in the retirement options pack sent to you by ReAssure. You don’t have to choose just one option – you can decide to take the benefits from your pension pots at different times or transfer them to another provider to access different options.
It's important to shop around and get as much guidance and advice as you need to help you make a decision about what's best for you. Other providers may also have more appropriate products or be able to offer a higher level of retirement income.
How will I know what to do?
You should read the retirement options pack that ReAssure has sent you, as this includes your current value and outlines the options available to you.
It's important to shop around and contact other annuity providers to get comparative quotes, to see what they may be able to offer you as well.
We also recommend that you take advantage of the free and impartial guidance service set up by the Government, called Pension Wise a service from MoneyHelper. If you are then still unsure what to do, you should speak to a financial adviser. To find one in your local area visit unbiased.co.uk
Where can I find pension guidance and advice?
Free impartial guidance
The Government offers free and impartial guidance through a selection of organisations.
Pension Wise a service provided by MoneyHelper
Offers a guidance session if you’re over 50 and in a defined contribution workplace or personal pension. You can chat to experts online, call or see someone face to face.
MoneyHelper
Provide online advice and guides plus tools, support over the phone and calculators on a wide range of subjects.
They also provide information on workplace and personal pensions for everyone.
Financial advice from an adviser
A financial adviser can provide you with a personal recommendation to help you make the right retirement choice, for a fee.
If you don’t have a suitable adviser already, you can find one in your area at unbiased.co.uk
You should make sure that they're authorised by the Financial Conduct Authority (FCA) and you can check this on the FCA register
The Silver Line
If you’re feeling overwhelmed or would like more general support, The Silver Line can offer information and advice.
Online: www.thesilverline.org.uk
Phone: 0800 470 80 90
Age UK
Age UK offers free and impartial advice on money matters in retirement, including pension options.
Online: www.ageuk.org.uk
Phone: 0800 678 1174
Why should I choose Legal & General?
Legal & General is a long-established provider of annuities. As at September 2022 we had more than 956,000 annuity customers. In the 12 months to September 2022 we paid our customers over £2.8 billion in pension annuity income.
All ReAssure customers who have a Guaranteed Annuity Rate (GAR), Guaranteed Minimum Pension (GMP) or other guaranteed annuity option will be able to use this when buying an annuity from us.
Will I pay tax on my pension income?
The income you receive from your pension is subject to income tax. The income tax bands for the tax year 2023/2024 are shown below. These are set by the Government and change every year. You can check the latest details or historic tax bands directly at GOV.UK or with a financial adviser or an accountant.
If your total income from all sources adds up to more than your Personal Allowance you will have to pay tax at the rate shown below.
| Tax band for 2023/24 | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | Between £12,571 to £50,270 | 20% |
| Higher rate | Between £50,271 and £125,139 | 40% |
| Additional rate | More than £125,140 | 45% |
The tax you pay depends on your individual circumstances. The above examples are based on current law and tax rates and may change. If you live in Scotland or Wales you may have a different income tax rate or band.
The amount you can earn in a tax year without paying tax is called your Personal Allowance. You’ll only pay tax on income over that allowance. The Personal Allowance drops by £1 for every £2 of income above £100,000. There is no Personal Allowance where income is higher than £125,140. Your Personal Allowance may be bigger if you claim Marriage Allowance or Blind Person’s Allowance.
Tax will normally be taken off and paid to HMRC by your pension provider before you receive your income.
We use the tax code we get from HMRC to work out how much tax to deduct from your pension.
Can I buy a Pension Annuity, Cash-Out Retirement Plan or Fixed Term Retirement Plan without going through a financial adviser?
You can buy our Pension Annuity, Cash-Out Retirement Plan or Fixed Term Retirement Plan directly from us. If you have your ReAssure fund value and you know what you want, you can get a quote online.
Alternatively if your pension has a Guaranteed Annuity Rate (GAR), Guaranteed Minimum Pension (GMP) or other guaranteed annuity option, you should contact us on 0800 008 3034 for a quote and, where appropriate, an application pack.
It’s important to shop around and get as much guidance and advice as you can before you make any decisions about what's best for you. A financial adviser will be able to help you explore all your options.
Where will my income be paid?
Your income will normally be paid into your UK bank or building society account. You must be named as either the account holder or joint account holder. All payments will be made in British pounds sterling (GBP).
We can arrange for payments to be made to an overseas account if requested, but there will be a charge for converting your payment from sterling to the required currency. The charge will be deducted from each payment instalment.
What happens if I change my mind?
If you apply for our Pension Annuity, you have 30 days from the date you receive our confirmation that your annuity has started to change your mind. If you don't cancel within this period, you won't be able to cancel at a later date or change your annuity payments. If you do decide to cancel, you'll need to return any annuity payments we've made to you.
If you apply for our Cash-Out Retirement Plan or Fixed Term Retirement Plan, you have 30 days from the date you receive our confirmation that your plan has started to change your mind. If we’ve paid you any income, you’ll need to return this to us.
Please refer to the product Key Features and Terms and Conditions for more information.
To cancel either plan you should write to us at:
Legal & General Retirement
PO Box 809
Cardiff
CF24 0YL
What happens at the end of my Cash-Out Retirement Plan term?
You don’t need to do anything at the end of your plan. When it reaches its end date it will close and no further payments will be made. We’ll write to you confirming that your plan has closed.
If you don’t have any other source of income or savings, or you feel you need help, we strongly recommend you seek guidance and advice.
What happens at the end of my Fixed Term Retirement Plan?
We’ll write to you before the plan ends to remind you of your options and what you need to consider. You’ll need to decide what you want to do with your fixed maturity value. You can:
- buy another fixed term plan
- use it to purchase a lifetime annuity
- transfer it to another pension scheme of your choice
- take it as a lump sum, that would be subject to income tax
When your plan ends no further income payments will be made. We’ll continue to hold your maturity value until you tell us what you want to do. We won’t pay any interest on the maturity value.
What happens to my retirement income product when I die?
Pension Annuity
If you've selected a dependant’s income on your Pension Annuity, we’ll continue to pay income to your surviving spouse, registered civil partner or financially dependent partner for the rest of their life. If you’ve selected a guaranteed minimum payment period, we’ll continue to pay your income to your estate or any other person you specify until the end of your chosen period.
Cash-Out Retirement Plan
If you die before the end date of the plan, we'll continue to pay the income to your beneficiary, or to your estate, until the end of the plan term. Alternatively, they may be able to take the remaining income as a lump sum payment.
Fixed Term Retirement Plan
Unless you choose a guaranteed minimum payment period that has not expired at the date of your death, payments will stop when you die and the maturity value will not be paid. Please see the Key Features for more details.
