What is a Cash-Out Retirement Plan?

Gives you a guaranteed income for a set period

Our Cash-Out Retirement Plan lets you use your pension pot to get regular income payments for between 3 and 25 years. It may be a tax-efficient way to withdraw your whole pension pot, rather than taking it all in one go or it may be a 'bridge' to see you through to a future date, when you're expecting another source of income to begin.

 

  • Secure and guaranteed income

    A guaranteed, regular income you can plan around with confidence.

  • Gives you control

    You can choose the number of years you receive an income for and the amount, to suit your specific needs

  • Payment options

    We can pay you  monthly, quarterly, half-yearly or yearly and either at the start (in advance) or at the end (in arrears) of  the month or year

  • A fixed or increasing income

    You can choose a fixed income that always stays the same or set your income to increase each year by anything up to and including 10%.
  • Manage your tax exposure

    In most circumstances, it offers a more tax efficient way to take cash from your pension pot rather than taking it all in one go.

  • Supporting your loved ones

    If you should die during the term of the plan, we will continue to pay regular income payments to your beneficiary or estate until the end of the term of the plan.

    Full details on these features are in the Key Features

  • Am I eligible?

    You must be aged between 55 and 85 and have at least £10,000 left in a pension pot to buy one after you’ve taken your tax-free cash.

  • I want to take the full pension pot as income

    You can use this product to take your full pension pot as income, tax efficiently, over a set period of time. You don’t have to use your whole pension pot if you don’t want to though.

  • I want security from risks

    Your income is guaranteed and is not affected by the performance of the investment markets or economy. Your income is guaranteed for the length of the plan.  

  • Tax-free cash

    You can usually take up to 25% of your pension pot as tax-free cash. If you don’t take the tax-free cash at the start of your plan, you can’t take it later.

  • Taxable income

    Payments will be taxed as income, which could affect any benefits you claim. The amount of tax you pay on income from the plan will depend on your circumstances, and may change based on your income tax rate.

  • When it's gone, it's gone

    If you don’t have another source of income later, this may not be for you.

  • Mind out for inflation

    If you choose to get the same income every year, this means with inflation, it may not buy as much in the future.

  • With security comes less flexibility

    You won't be able to change the amount you get, but if your circumstances change you may be able to cash it in or transfer it to another pension product.

  • No options later

    Unlike a Fixed Term Retirement Plan, you won't have a lump sum at the end, to make new choices later in life. Your income stops at the end of the plan.

  • Health risks not recognised

    If you or your dependant has a health or lifestyle risk, a Pension Annuity, or products that take your health into account, may offer a higher income.

Ready for a personalised quote?

If you know what you want and have your paperwork to hand, it only takes about 15 minutes to get an online quote.

 

 

Next steps

Now that you’ve learnt more about our Cash-Out Retirement Plan, why not look at other products available as part of your shopping around. Other providers may have more appropriate products or be able to offer a higher level of retirement income.

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Need some help?

Making well-informed decisions about financing your retirement is important so it’s worth shopping around and using available guidance and advice, before you buy. Other providers may have more appropriate products or be able to offer a higher level of retirement income.

 

Retirement guidance

Pension Wise from MoneyHelper

You can get guidance from the government's free and impartial service to help make your money and pension choices clearer.

The availability of appointments can vary between a few days and several weeks, so if you need guidance, it's a good idea to book an appointment slot now:

0800 011 3797
9am to 5pm, Monday to Friday.
Calls may be recorded or monitored. 

Speak with us

Our colleagues are always happy to help with your questions or to help you apply for a quote.

 

Get advice

Financial advisers can give you professional advice for pension planning.

You usually need to pay for their service and in return they recommend how to make the most of your pension given your circumstances.

To find and compare financial advisers please visit their website below.