Retirement planning

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Your income options at retirement

It’s important that you understand and plan carefully how and when you take your pension from the Emerson UK Pension Plan and you should bear in mind that it can affect the amount of tax you pay as well as the amount of some benefits you might receive from the State.

Take a look at some options:

Leave your money alone and take it later

You don’t have to take your money now, even if you’ve reached your retirement age.

Get a guaranteed income for life

These are known as annuities where you can use your pension fund to buy one from an insurance provider. There are different types available so it’s important to shop around and you can take up to 25% of your pension fund as tax-free cash with an annuity.

Take money as and when you need it

You can take your full amount over two tax years, but the balance will need to be transferred to another provider after the end of the second tax year.

Enjoy a cash lump sum

You’re free to do this but there are certain things you need to consider about your individual tax situation. You can take up to 25% of your fund as tax-free cash with this option.

Mix 'n' match

You don’t just have to choose one option. You can mix them over time or use for your entire pot (subject to two tax year withdrawals).

Flexible retirement income (Drawdown)

With our drawdown provider Lifesight, you can take up to 25% of your pension pot tax-free, and keep the rest of your pot invested to give you an income. You decide how much to take out and when. You can set up a regular income if you choose. How long it lasts will depend on how your investments perform and how much you take out.

Further information about LifeSight can be found by going to www.lifesight.com/drawdown.

If you need some further help on understanding the tax implications, visit www.pensionwise.gov.uk/en/tax

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