Your investment options with a flexible income
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 (subject to allowances) 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 pathways 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.
All options for taking your money
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
This option will keep your money invested and aims for longer term investment growth.
This fund may be suitable if you’re aiming to use your money for inheritance or to invest later in retirement.
Option 2
This option will keep your money invested until you find an option that suits you.
This fund may be suitable if you want to use your money for a guaranteed income in the future.
Option 3
This option aims to give you access to flexible withdrawals and grow your investments over a longer period.
This fund may be suitable if you plan to use your money for occasional or regular income in the early years of your retirement.
Option 4
This option aims to invest your money in funds that are less likely to go up or down in value.
This fund maybe suitable if you’re thinking of using your money for holidays or rainy days.
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.Worried about retirement?
If you're aged 55 or over, our retirement advice service could help you make the most out of your pension savings.
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.
