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AA Worksave Pension Plan

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Your investment options with a flexible income

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If you choose to take a flexible income you can usually take up to 25% of your pension pot as a tax-free cash lump sum and leave the rest invested to provide a regular income, and occasional lump sums if required. This is often referred to as flexi-access drawdown.

It’s important to choose an investment approach for the money left invested that best suits your objectives for the future. You will have a number of options:

  • Choose from one or more investment pathway and we’ll invest your pension for you in a way that supports your choice
  • Leave your money invested in your current funds
  • Choose your own funds

When you come to request a quote from us, we’ll ask you to tell us your choice.

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A flexible income is not the only option for taking your money. Explore all your options.


Investment pathways

If you choose to take a flexible income, that decision is about what you want to do with your pension savings today. Investment pathways have been designed to help make sure that the portion of your money that remains invested can support your objectives for the future.

You can choose from the options below and decide which option best suits your objectives for the next five years. If you have more than one goal you might want to think about splitting your pension savings between the different options to achieve this. We’ll invest your pension for you in a way that supports your choices.

Which option best suits your objectives for the next five years?

Option 1: I have no plans to touch my money in the next five years

Leave it invested: You may be thinking about leaving this part of your pension savings for inheritance or investing it for later in retirement. This option aims for longer term investment growth.

Option 2: I plan to set up a guaranteed income (annuity) within the next five years

Be ready to buy an annuity: You are looking to use this part of your pension savings for a guaranteed income (annuity). You want to know exactly how much you're getting, come rain or shine. This option will invest your savings until you’ve shopped around for the annuity that suits you.

Option 3: I plan to start taking a long-term income within the next five years

Start taking a flexible income: You might be planning on using this part of your pension savings for an occasional or regular income to meet your day to day needs in the early years of your retirement. This option aims to support withdrawals with the potential for investment growth over a longer period.

Option 4: I plan to take my money within the next five years

Use it all: You are thinking about taking this part of your pension savings for holidays or rainy days. This option aims to invest your pension savings in funds that are less likely to go up and down in value.


Personalised advice

If you want help with your investment choices, you should speak to a financial adviser. You can find one in your local area at unbiased.co.uk. Financial advisers usually charge a fee for their services, but it will be personal to you and your circumstances.

We can offer you a way of paying your adviser directly from your pension pot, this is called a facilitated adviser charge. The Facilitated adviser charge guide explains how this works.

Ready to make a choice

Once you’re ready to take your money and you’ve decided which option (or options) you want to take, you can get in touch for all the information you need and any relevant forms.

We’re here to help if you have any final questions or you need any more information before you make your decision, just let us know.

A flexible income is not the only option for taking your money. Explore all the other options.

 
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Taking money from my pension

A guide to taking cash sums and a flexible income from your Legal & General pension pot.

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Pension Wise

A free and impartial service backed by the government who will help you make sure that the decisions you’re making are the right ones for you.

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Your options for taking your money

You’ll want to be sure you’re making the right choice so that your future is secure.