Secure retirement income for a set period
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.
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Gives you control
You can choose the number of years you receive an income for and the amount, to suit your specific needs
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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.
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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 document.
- 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.
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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.
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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.
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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.
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When it's gone, it's gone
If you don’t have another source of income later, this may not be for you.
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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.
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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.
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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.
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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.
Pension Annuity
Now that you’ve learnt more about our Cash-Out Retirement Plan, why not look at other product 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.
