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Money Purchase

If you have any final salary scheme benefits it is usually better to take a pension from that scheme.

You have more choice than ever before in respect of any money purchase benefits. It makes sense to get guidance or advice about a decision which will affect your income for the rest of your life. There are three main options for your defined contribution or money purchase benefits.

Cash Lump Sum(s)

Secure Income for Life

Flexible Income

  • Whichever option you choose, under current legislation you will be able to take part of your fund tax free, usually 25%.
  • The size of your fund is relevant to your decision.
  • Buying a secure income is usually a one off financial decision for the rest of your life.
  • If you take all or part of your benefits early, the overall value of your benefits will be lower and you may not have enough income to live comfortably during your retirement.
  • You can transfer your benefits to one or more different pension providers who may offer different options with different features and charges, including a secure income option.
  • The amount of income you receive will depend on the size of your fund and which options you select.
  • You can choose one of the three main options or split your fund between them, depending on your personal circumstances.
  • The Money Advice Service provides a helpful information.

You have more options on what you can do with your pension savings. We recommend you get guidance or advice to help you with this decision. Pension Wise is a new service from the Government that will offer free and impartial guidance

The information on this page is provided in good faith but is not legal or financial advice or binding on the Trustee. The trust deed and rules will override in the event of any inconsistency.

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