If you transfer out
If you transfer your benefits out of the Fund you will have access to the full range of flexible retirement options.
If you have an Investment Account, you can transfer it out of the Fund with or without your Retirement Account.
Financial advice
If you are interested in transferring out your Retirement Account and its value is £30,000 or more, you must take independent financial advice before any transfer can go ahead.
The Company has appointed Wren Sterling to provide members with financial advice, and negotiated discounted rates.
See the Financial advice page for more details.
Transfer options
For any Fund benefits you transfer out, you will have the following options.
Income drawdown
You can use income drawdown to take some of your benefits as income whenever you want while continuing to invest the rest.
You can still take up to 25% of the amount transferred as a tax-free cash sum.
You also have the option to buy a pension in the future with any remaining funds in your drawdown account if you would like the security of a guaranteed income.
Buy a different type of pension
You can buy a different type of pension (an annuity) from an insurance company, which might be better suited to your circumstances.
You would still be able to take up to 25% of the amount transferred as a tax-free lump sum.
There are lots of different types of annuity available and you would be able to choose the one that is most appropriate.
Take your benefits as cash only
You can take some or all your benefits as cash.
The first 25% of the amount transferred would be paid tax-free. Any cash you take above this level would be subject to tax.
Alternatively, you can take a series of cash sums over time. The first 25% of each cash sum would be paid tax-free and the remainder would be subject to tax.
A combined approach
You can combine the three flexible options outlined above to suit your circumstances.
For example, you could:
- take the maximum tax-free cash sum
- choose income drawdown for the early part of your retirement and
- use your remaining funds to buy a pension to provide you with a fixed income in later life.
What next?
You've read about your options if you transfer out. Have you read about your options From the Fund?
Or find out how the process works – what you can expect to receive and when, in the run-up to retirement.