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Your Main Options

There are three main options. Each option has different features, rates of payment, charges and tax implications. Click for more information about each. You can combine options if necessary.

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  • You can take one or more lump sums from your fund.
  • You can either take the whole tax free sum up front or take a slice of each cash sum tax free.
  • Taking all your cash as one lump sum may mean you pay more tax than usual.
  • Cheviot provides cash options for members.
  • If you die before age 75, under current legislation the remainder of your fund can be paid tax free. It might be subject to the Lifetime Allowance if it is not in a drawdown arrangement. If you are over 75 when you die, an additional tax charge would be payable.
  • A secure income is usually a one off financial decision for the rest of your life and your savings are no longer invested for you. You can chose to buy a secure income with part of your savings and leave the rest invested.
  • A secure income provides certainty about your future income.
  • A secure income may be fixed or increase with inflation.
  • It is important that you shop around to get the best rate.
  • You will usually have to take your 25% tax free cash sum as one lump sum.
  • You will need to decide what type of pension you want and whether you want to provide a pension for your spouse or a dependant. There is usually no lump sum payable other than during any guarantee period.
  • A secure income may not be best value for money for you or your family if you die prematurely.
  • Cheviot does not provide a secure income option.
  • If you are prepared to take some risk, a flexible income may be a good choice.
  • If investments fall or if you take too much income, your fund may run out.
  • You can always buy a secure income in the future if certainty of income becomes more important.
  • You can have your tax free cash as one lump sum or as 25% of each payment.
  • If your fund grows, the amount of tax free cash grows too.
  • You can choose how much income you receive each year.
  • You will need to decide how to invest your fund. Cheviot's Retirement Planning option is our default option after retirement but you can choose the investment option that is right for you.
  • Any funds remaining when you die can be passed on to your family. If you die before age 75, under current legislation, the remainder of your fund can be paid tax free. It may be subject to the Lifetime Allowance if it is not in a drawdown arrangement. If you are over 75 when you die, an additional tax charge would be payable.
  • If your savings are in a drawdown arrangement, it may be possible to leave the fund invested and pass it on to your family.
  • Cheviot provide a flexible income option.
  • You can decide to split your fund between the options.
  • The size of your fund will be relevant.
  • Each option will provide a different level and type of income.
  • You may want to have a minimum secured income but be prepared to take some risk with the rest of your fund.
  • You may only need a cash lump sum immediately but not a regular income.
  • You and your employer may want to continue making contributions above £10,000 per year.

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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