This form can be used if:
- You’re comfortable making your own request.
- You want to request a one-off tax free or taxable income payment from your existing Income Release Plan.
- You want to set up, change, or stop an existing regular monthly payment from your Income Release plan.
- You want to withdraw all funds and close your Income Release Plan.
This form can’t be used if:
- You have a capped drawdown pension.
- You want to receive regular payments at a frequency other than monthly
- You want your regular monthly payments to automatically increase each year (e.g., by the Retail Price Index).
- You want to use our Income Tap facility.
If you need any of these options, or if you’re unsure about any of the questions on this form and would like help, please stop and contact us using the number below.
Before continuing this request, please consider the following questions:
Are you aware of how your request will impact your remaining pension pot?
Check your pension pot to see if it has enough money to cover the amount you’re requesting, whether it’s a one-off or regular monthly payment.
Be aware of how your request might affect your remaining pension pot.
If this is your first taxable income payment or you’re receiving tax-free income, we’ll provide an illustration to show how your pension pot might be impacted to the email address you provide. You’ll need to re-confirm that you want to proceed with this request before we process it.
If you’ve already received a taxable income payment from your pension or your request doesn’t include a tax-free element, we won’t provide you with an illustration and we don’t need you to reconfirm that you want to proceed before we process your request.
We won’t provide an illustration if you’re requesting us to stop income payments.
Are you aware of the tax implications of your request?
Some of your income may be subject to tax. You can usually take up to 25% of your total pension savings tax-free across all your pension pots, with the remainder taxed as income. If you’re unsure about your remaining tax-free allowance or your available options, please get in touch.
There are limits on the amount of tax-free cash you can take across all your pension pots. This is known as the Lump Sum Allowance (LSA), which is currently set at £268,275 (although this may be higher under certain circumstances, e.g., protected allowance). Any tax-free payments you take above this limit will be subject to tax at your marginal rate of income tax.
If you are taking any taxable income payments, the Money Purchase Annual Allowance (MPAA) applies to you. It limits the amount that can be paid into all your defined contribution pension pots to £10,000 a year. If more than that amount is paid, an annual allowance charge will apply to the excess at your marginal rate of income tax.
Are you aware of how any income withdrawal will be processed?
Any income you take from your plan will be withdrawn proportionately across all the funds your pension savings are invested in, unless there is an existing arrangement in place for regular monthly payments to be withdrawn from a designated fund. In which case any taxable income payments only, will follow the designation for regular taxable income. If you have any questions or need support, we’re here to help. You can get in touch with us by calling 0345 850 8953.