Options at retirement

There are a number of decisions that you will need to take when you retire and it might be worth considering these now.

Decision 1 - Take your pension?

Do you want to take your pension when you retire from the Company or do you want to defer it until a later date?

Decision 2 - Do you want tax free cash?

You will have the option to take your benefits as a full pension or you can give up part of your pension for a tax free cash lump sum on retirement (also called a "Pension Commencement Lump Sum"). You will be able to take up to 25% of the value of your total pension as a lump sum.

Decision 3 - Do you want to give up pension for extra supplement or give up supplement for extra pension?

The Supplement Guide below explains the options available to you.

Decision 4 - How will you spend your Additional Voluntary Contributions (AVCs)?

You will have three options at retirement:

  • Take your AVCs as part of your lump sum. You can take up to 25% of your pension (up to £50,000) tax free.  You may need to pay tax on any amount taken in excess of this;
  • Use your AVCs to provide an income through an annuity or drawdown; or
  • Leave your AVCs and take them at a later date (called "deferring your AVCs").

You can find more information about the choices you have at retirement and the process in the 'Retiring - What to Expect Guide' below.


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pdfRetiring - What to Expect Guide - October 2018 221.45KB 25th October 2018 Download
pdfSupplement Guide - January 2019 633.75KB 9th January 2019 Download