Cash-Out Retirement Plan
Our Cash-Out Retirement Plan is a fixed term contract that will pay you a pre-agreed regular income over a specified period between 3 and 25 years.
To apply you must be aged between 55 and 85 and have at least £10,000 to invest after you've taken any tax-free cash.
What are the options?
If you choose our Cash-Out Retirement Plan, you can tailor it to meet your needs. The options you choose will determine your income.
|Tax-free cash||You can take up to 25% of your pension pot as tax-free cash sum. If you don't take it at the start of your plan, you won't be able to take it later.|
|Amount of income or term of your Plan?||Choose how much income you want and how often it's paid, and we'll work out how long your plan term will be. Alternatively, choose how long you want your plan to last, and we'll work out how much income you can receive. Once you've decided and started your plan, you won't be able to change these options.|
|How we pay you?|| |
We can make payments monthly, quarterly, half-yearly, or yearly.
We can pay your income in advance (at the start of the payment period) or in arrears (at the end of the payment period).
For details of the actual amount that you could receive please ask for a quote.
Is it suitable for me?
It may be suitable for you if:
It may not be suitable for you if:
Example Cash-Out Retirement Plan
Molly is 65 and would like to use one of her pension pots to pay for traveling and enjoying the start of her retirement.
She contributes £50,000 from an existing pension plan into a Cash-Out Retirement Plan and chooses a term of five years. We calculate the fixed income Molly will receive is £10,300 each year, and the income will continue to be paid to her beneficiary if she dies before the end of the term.
This sum is the total amount due to be paid, over the full term of the plan, before income tax.
These are example figures only. For details of the actual amount you could receive, get a quote online.
Important things to consider
- You can't make any changes to the plan once it's started.
- If your circumstances change during the term of the plan, you will be able to cash it in or transfer to another scheme.
- You'll receive the same income each year with this product. This could mean what your income buys might not be as much in future years as it is now.
- Plan payments are considered as income, and subject to income tax. This could affect any benefits you claim.
- The tax you pay on the income from the plan will depend on your individual circumstances and can change. This may affect the income you receive from us.
- At the end of your plan income will stop.
- You may be able to get a higher amount of income through a product that assesses your health and offers higher returns for certain lifestyle or medical conditions.
Frequently asked questions
How can I buy a Cash-Out Retirement Plan?
What happens when you take out a plan?
When you take out the plan you become a member of the Legal & General Retirement Pension Scheme. This is an Her Majesty's Revenue & Customs (HMRC) UK Registered Pension Scheme.
What happens at the end of my plan?
You don't need to do anything. When your plan reaches its end date it will close and no further payments will be made. We'll write to you to confirm 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 or financial advice.
Your next steps
Ready to find out more?
You may choose to work through all the product sections below.
Or take a look at
Our Retirement Income Calculator allows you to quickly see what income you might expect from our range of retirement solutions.
Ready to get a quote?
You can get a quote online for any of our retirement products.