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.

Option Description
Tax-free lump sum You can usually take up to 25% of your pension pot as a tax-free lump 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.


You can be paid monthly, quarterly, every six months or every year, either:

  • in advance – at the start of the payment period; or
  • in arrears – at the end of the payment period.

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 can 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 now might not be as much in future years.
  • Plan payments are considered as income, and subject to income tax. They could also affect any state benefits you claim.
  • If you have a Sun Life Financial of Canada Guaranteed Annuity Rate, you won't be able to use this when buying our Cash-Out Retirement Plan.
  • Our Cash-Out Retirement Plan is not available for anyone living outside the UK.
  • The tax you pay on the income from the plan will depend on your individual circumstances and can change. At the end of your plan, income will stop. 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.
  • 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.

Ready to get a quote?

You can get a quote online for either of our retirement products.