DC Retirement Options
31 October 2022
As a member of the DC Section of the Emerson UK Pension Plan (“the Plan”), there are a number of ways you can use your Pension Account at retirement. Under all options, you can take up to 25% of the value of your Pension Account as a tax-free cash lump sum and can use the remainder in one, or a combination, of the following ways:
- Use your Pension Account to purchase an annuity from an insurance company – this is a guaranteed income for a period of time, or for life.
- You can take the full value of your Pension Account as a cash lump sum(s), which can be split over two tax years.
- You also have the option of transferring your Pension Account to another arrangement that allows you to keep your Pension Account invested, and then to draw an income from it as and when suits you – this is known as income drawdown.
The earliest age you can usually access your Pension Account is currently age 55; this is known as the Normal Minimum Pension Age (NMPA). However, from April 2028, the Government is planning to increase the NMPA to age 57. You can still access your benefits before this on the basis of ill-health.
Introducing LifeSight Income Drawdown
The Trustee of the Plan recently reviewed the retirement options available to members, and, from 1 July 2022, is pleased to offer the LifeSight Income Drawdown arrangement as a provider that you may wish to consider, as part of your retirement planning in addition to other options. LifeSight isn’t available to employees directly.
The Trustee is aware that some of you may be considering your retirement options and therefore, wanted to notify you of this additional option that will be available later this year. Below is a snapshot of what you can expect from LifeSight, with more information to follow in due course. We’ll also be producing a detailed ‘Retirement Guide’ which will provide more information on the options available to you.
What can LifeSight offer you?
Flexibility
You access your savings as and when you need them
Accessibility
Ease of access through your personal online Account
Choice
Invest your savings in a way that matches with your goals
Planning
Online tools to help you see when your savings will run out
Support
Ongoing touch-points to help you manage your savings
Protection
A Trustee Board responsible for looking after assets
Further information about LifeSight can be found by going to www.lifesight.com/drawdown.
On the “Home” tab there are guides that explain the key features of LifeSight. The “How to join tab” explains how you can apply for LifeSight and how you can contact the team with any questions.
