Quick Options Guide
LIFETIME ANNUITY
● Regular and secure income for life.
● Tax free cash provided at outset and fund used to purchase
an annuity paid for life.
● Your annuity income is paid at least annually and can
increase or remain level in payment.
● Additional options can be selected at outset such as
annual or one off increases, spouse’s benefits or guarantees
which reduce your own income.
● Once you have bought your annuity, you usually cannot
change your mind or change benefits. On death there may also
be the option of return of fund.
SCHEME PENSION
●Regular and secure income for life.
● Tax free cash paid at outset and fund used to provide
income for life.
● Your annuity income is paid at least annually and can
increase or remain level in payment.
● Additional options can be selected at outset such as
annual increases, spouse’s benefits or guarantees which
reduce your own income.
● Once you have bought your annuity, you usually cannot
change your mind or change the benefits.
PHASED RETIREMENT
● Part of your fund and part of your tax free cash are used
in segments to provide income.
● The balance of the fund not used for income / tax free
cash remains invested with a view to providing higher future
benefits.
● Your starting annuity is smaller, but is supplemented by a
portion of your tax-free cash sum.
● Each year you decide how much fund to use for annuity
purchase and how much tax free cash is used to supplement
your income.
● Because you don’t commit all your funds to buy an annuity
immediately, you keep your options open.
UNSECURED INCOME / PENSION
● Tax free cash lump sum paid at outset and fund remains
invested. Income can also be selected if required.
● The balance of the fund not used for income remains
invested with a view to providing higher future benefits.
● You can choose the income you want, and when you want it,
between nil and 120% of an equivalent single life annuity.
● If investments do well, you may benefit from higher future
income payments, and vice versa.
● On death, the remaining fund is available to pay benefits
to your family or dependants.
ALTERNATIVELY SECURED PENSION
● Available at age 75 for people who do not wish to purchase
an annuity.
● All funds which are not used to purchase an annuity at age
75 will move into ASP.
● You can choose the income you want and when you want it
between 55% and 90% of an equivalent single life annuity.
● If investments do well, you may benefit from higher future
income payments, and vice versa.
● On death, the remaining fund is available to pay benefits
to your spouse or dependants. It could also be paid to a
nominated charity.
THIRD WAY PENSIONS
● Tax free cash lump sum paid at outset and fund remains
invested. Income can also be selected if required.
● The balance of the fund not used for income remains
invested with a view to providing higher future benefits.
● You can choose the income you want, and when you want it,
in line with UI – some plans offer an income ‘lock in’
guarantee.
● If investments do well, you may benefit from higher future
income payments. Some plans offer an investment growth ‘lock
in’ guarantee.
● On death, the remaining fund is available to pay benefits
to your family or dependants, depending on plan type
selected.