Retirement Income

Retirement Account

Help your clients manage their retirement with our flexible income options.

Key benefits

  • Available up to age 99.
  • Comprehensive range of investment solutions including our Retirement Portfolio Funds (RPF).
  • From age 55 designate into Retirement Income, or use Drip Feed Drawdown (automated phased drawdown) to take some tax-free cash with each designation.
  • No minimum income withdrawal amount.
  • Can be paid by monthly, quarterly, half-yearly, yearly, or ad-hoc – change at any time.
  • Takes capped drawdown transfers - switch to flexible drawdown at any time.

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Key details

Eligibility
  • Minimum age 55 (lower in certain circumstances).
  • Maximum age 98 (at least one full year before the selected retirement date).
  • Must be a UK resident.
  • For Drip Feed Drawdown see our Adviser Guide (PDF)
Minimum payments
  • The Account must hold at least £30,000 (before tax-free cash) to move into Retirement Income. If the Account is being opened with a drawdown to drawdown transfer, this must be at least £22,500.
  • The first move into Retirement Income must be at least £10,000 before tax-free cash, with subsequent moves being at least £2,000 before tax-free cash.
  • There’s no minimum for Drip Feed Drawdown.
The amounts shown above can change.
Choices from age 55
  • Moving into Retirement Income by designation, immediate vesting or Drip Feed Drawdown (PDF) can allow your client to take up to 25% (more if your client has a protected lump sum entitlement) of the value as a tax-free lump sum from each crystallisation amount.
  • No minimum income withdrawal amount.
  • Transfers in on a capped drawdown basis can continue on that basis if required but can switch to flexible drawdown at any time.
  • Income can be paid monthly, quarterly, half-yearly or yearly.
  • Ad-hoc payments available.
  • Amount and frequency can be changed at any time.
  • Payments made by BACS, net of tax using PAYE.
  • Buy an annuity or transfer to another provider at any time.

Death benefits

On death, the value of the Account is available to provide benefits for beneficiaries with us or another provider.

Find out more about death benefits (PDF)

Key documents

Adviser Technical Guide (PDF)

Key Features of Retirement Income (PDF)

Drip Feed Drawdown Adviser Guide (PDF)

See all our documents in one place, including forms, guides and brochures.

Literature library

Smart ways of managing retirement income

  • To help you address the challenges of investing for retirement income, we have introduced the Retirement Portfolio Funds. These are innovative, low cost, multi-asset funds designed to manage significant volatility to help a pension pot last longer. As they balance the need for growth and manage the risks of volatility, they are a good option for clients who use income drawdown.

    Learn about Retirement Portfolio Funds

  • Our automated phased drawdown option, allowing your clients to draw regular amounts using just tax-free cash or a combination of tax-free cash and taxable income to help control the level of taxable income they receive in retirement.

    • Helps your clients to manage their tax affairs efficiently.
    • Potential to help their retirement fund grow.
    • Opportunity for further tax-free cash to be accumulated.

     Find out about Drip Feed Drawdown

  • As the market settles after pension freedoms, should you complement the Centralised Investment Propositions you use for clients accumulating wealth with a Centralised Retirement Proposition (CRP) for clients needing income?

    Our in-depth CRP Adviser Guide (PDF) takes you through the steps involved.

    Centralised retirement infographic
    • Retirement income may be liable to personal income tax.
    • Tax treatment depends on the individual circumstances of your client. Tax rules and your client’s circumstances may change in the future.
    • Tax charges will normally apply if the Government’s ‘Annual Allowance’, ‘Tapered Annual Allowance’, ‘Money Purchase Annual Allowance’ or ‘Lifetime Allowance’ are exceeded.
    • The value of your client’s Account can go down as well as up, and could fall below the amount(s) paid in.
    • If any income and the charges deducted from your client’s Account are more than any investment growth, the value of their Account will go down. This could reduce the amount of income that they can take in the future and the income from any annuity bought later.
    • High levels of income may not be sustainable and in some cases could reduce the value to zero. You should consider the impact this might have on your client’s income in retirement.
    • The income from your client’s Account and any annuity bought later may be less than they could have received if they had bought an annuity at the start.
    • Some investments, such as property, can take longer to buy and sell than others. This may delay switching between investments and when benefits or any transfer payments can be taken.

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