Taking Benefits from an Arrangement
Benefits can be taken as Lump Sums and Pensions, though the exact makeup of the way you choose to take benefits is quite flexible, so most people should be able to arrange them to suit their particular needs.
This is an area where it is essential that you discuss the options with your Financial Adviser several years before you expect to retire, or semi-retire. With advance planning comes maximum flexibility.
Last updated on
April 7, 2010
- pension funds
Pension Fund prices, performance charts and financial tools to help with your research.
A personal pension or stakeholder pension plan is a long-term contract. It is not possible to surrender a pension for a cash sum.
Future changes in pension legislation may adversely affect the plan, or the benefits derived from it.
Your future benefits will depend on fund growth in the period up to retirement and prevailing annuity rates at retirement. For instance early retirement is likely to result in lower benefits, both because of the shorter period of growth and the higher cost of annuities for younger retirees.
The value of unit-linked pension funds is related to the markets in which they invest and thus will rise and fall in line with those markets. Past performance is not necessarily a guide to the future.
The benefits derived from a personal pension or stakeholder pension plan are in addition to any State pensions you may be entitled to. They may result in you becoming ineligible for State benefits such as the Minimum Income Guarantee/Pension Credit and Housing & Council Tax Benefits.
All pensions in payment are treated as earned (as distinct from investment) income and assessed for Income Tax.
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