The Retirement Account combines Retirement Planning and Retirement Income in one policy. How does the move of pre-retirement savings to post-retirement income work in practise?


The funds held in the Retirement Planning part of the Retirement Account can either be partially or fully moved to the Retirement Income part and taken as an unsecured pension with any tax-free lump sum being paid as part of the process. This process is known as designation. Your clients can continue to make contributions to the Retirement Planning part whilst holding funds in the Retirement Income part. This is particularly useful for those clients who wish to gradually reduce their working hours. Protected Rights must be designated in full, they cannot be partially designated. Any tax-free cash lump sum must be taken at the outset of each designation to the Retirement Income part. The maximum entitlement is normally 25% of the value designated. This process can be carried out with the adviser completing the online Designation Form and where there is more than one investment type, instructing us of the investments that should form the designation.

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