1. Home
  2. Existing customers
  3. Your products
  4. Manage your pension
  5. Set up or change a payment from an existing Income Release plan

Set up or change a payment from an existing Income Release plan

​

Before you start

You can use this form if you already have an Income Release plan and want to take a one-off payment, want to start regular payments or amend a current regular payment.

We aim to start processing your request within 5 working days. It will then take a further 3-5 working days to reach your account.

To speed things up, please have this information ready before you start:

  • Your contact details
  • Your policy/plan number
  • Your National Insurance number
  • Your bank details
     

Start your request

This form should take less than 10 minutes to complete. All fields are mandatory unless marked as (optional).

Personal information collected on this form will be used to administer your request. To understand the detail of how we use your information you can read the privacy policy (opens in new window) or listen on 0800 085 8352.

1. Important Information

This form can be used if: 

  • You’re comfortable making your own request.
  • You’re looking to request a one-off payment from your existing Income Release plan.
  • You’re looking to set up, change, or stop an existing regular payment from 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 income 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. 

We’ll provide an illustration to show how it might impact it to the email address you provide. If this is your first regular income payment or you’re receiving tax-free income, you’ll need to re-confirm that you want to proceed with this request before we process it. 

If you’ve already received a regular income from your pension or your request doesn’t include a tax-free element, we won’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. Up to 25% of your pension pot can usually be taken tax-free, 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 will be withdrawn proportionately across all the funds your pension pot is invested in.

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.

2. Think about your circumstances and financial decisions

Making a choice about what to do with your pension is important and life can be difficult at times.

When you’re having a hard time, financially, or with your health and wellbeing, it can impact your day-to-day decisions. Some circumstances that can impact your financial decision-making include:

  • Recent life changes, such as the loss of a loved one, a relationship ending or caring responsibilities
  • Needing support to manage your finances, such as help from a trusted friend, family member or caregiver
  • Health concerns or conditions, such as mental health difficulties, a recent operation, or a cancer diagnosis.

If you are in serious ill-health and your life expectancy is less than one year, you may be able to take your entire pension pot tax-free. Give us a call on 0345 602 1885 for more information on eligibility and support available.

Is there anything that could affect your financial decisions?
Are you comfortable continuing on your own?

 

Get in touch for help

Give our customer service team a call on 0345 850 8953.

Lines are open 8am to 6pm, Monday to Friday, excluding bank holidays.

What you'll need when you call

Have your plan number ready when you contact us. You will find this on your statement or plan documents.

3. The help available to you

 

Regulated Financial Advice and Pensions Guidance

Royal London can't give financial advice and we strongly recommend that you take financial advice and/or the free pension guidance available before you access your pension savings.

 

Regulated financial advice

You can take regulated financial advice at your own cost from a financial adviser. If you don't have a financial adviser, you can find one in your area.

Please select one of the following:
Have you previously had a financial adviser providing advice on this pension plan?

Pensions guidance

You can take pension guidance from Pension Wise. Pension Wise is a free and impartial government service from Moneyhelper that aims to help you make an informed decision as to what to do with your pension savings, including the different options available to you. It’s delivered at an appointment with an independent pensions specialist.

If you've previously received Pension Wise guidance, you may benefit from guidance again if your personal circumstances or the value of your pension savings have changed significantly. The different options described in the guidance may have different significance and relevance to you than previously.

If you'd like us to book a Pension Wise appointment for you, then please give us a call on 0345 850 8953. Alternatively you can book your own appointment with Pension Wise on 0800 100 166 or go online and visit Moneyhelper.

I confirm that:

4. What would you like to do?

5. Tell us more about what you would like to do

 

Set up a regular income payment

25% of the funds in your savings account can be taken tax free, the remainder is taxed as income. If you're unsure of your remaining tax free allowance or the options available to you, please contact us.

When requesting a combination of tax-free and taxable income payments, the tax-free part must be at least 25% of the total payment. Both types of payments will be made at the same time each month.

What’s the gross amount you’d like to receive each year ie before tax?
What’s the total amount of tax-free income you’d like to receive each year?
You can choose a payment date between the 1st and 28th of the month. Please allow at least 10 working days from the date that you submit your request for your payment to be set up. If your payment is set up after your chosen date, your payment will be scheduled for the same date in the following month

For taxable payments, if you select the 6th, 7th, 8th, or 9th of the month, there may be instances where the tax deduction is higher than expected due to two payments falling within the same tax month. If the payment date falls on a bank holiday or weekend, we will process the payment on the preceding working day. Tax rebates resulting from these instances will typically be applied in the following month. For further information, please contact us.

For example, this might be the same as your ‘target age’ on your plan. If you are unsure, please use 75.

Although you may be taking some of your pension savings immediately using Income Release, your ‘target age’ is the age you may want to consider alternative retirement options. For example, using the rest of your pension savings to buy a secure income for life (often called an ‘annuity’). If you’re unsure or you haven’t decided yet, please use age 75. If you leave this blank, we’ll use age 75. If you’d like to change your chosen target age in the future, just get in touch.

 

Take a one-off lump sum

Tax-free cash payment
Would you like to receive the maximum amount available?
One-off taxable income payment
Please tell us gross amount i.e. before we deduct tax. The first taxable payment will be taxed under the emergency code.

25% of the funds in your savings account can be taken tax free, the remainder is taxed as income. If you're unsure of your remaining tax free allowance or the options available to you, please contact us.

 

Increase my existing regular income

When requesting a combination of tax-free and taxable income payments, the tax-free part must be at least 25% of the total payment. Both types of payments will be made at the same time each month.

Please tell us gross amount i.e. before we deduct tax. If there is no taxable element, please put O below.
If there is no tax-free element, please put O below.

25% of the funds in your savings account can be taken tax free, the remainder is taxed as income. If you're unsure of your remaining tax free allowance or the options available to you, please contact us.

You can choose a payment date between the 1st and 28th of the month. Please allow at least 10 working days from the date that you submit your request for your payment to be set up. If your payment is set up after your chosen date, your payment will be scheduled for the same date in the following month.

For taxable payments, if you select the 6th, 7th, 8th, or 9th of the month, there may be instances where the tax deduction is higher than expected due to two payments falling within the same tax month. If the payment date falls on a bank holiday or weekend, we will process the payment on the preceding working day. Tax rebates resulting from these instances will typically be applied in the following month. For further information, please contact us.

 

Decrease or stop my regular income

When requesting a combination of tax-free and taxable income payments, the tax-free part must be at least 25% of the total payment. Both types of payments will be made at the same time each month.

Please tell us gross amount i.e. before we deduct tax. If there is no taxable element, please put O below.
If there is no tax-free element, please put O below.

25% of the funds in your savings account can be taken tax free, the remainder is taxed as income. If you're unsure of your remaining tax free allowance or the options available to you, please contact us.

You can choose a payment date between the 1st and 28th of the month. Please allow at least 10 working days from the date that you submit your request for your payment to be set up. If your payment is set up after your chosen date, your payment will be scheduled for the same date in the following month.

For taxable payments, if you select the 6th, 7th, 8th, or 9th of the month, there may be instances where the tax deduction is higher than expected due to two payments falling within the same tax month. If the payment date falls on a bank holiday or weekend, we will process the payment on the preceding working day. Tax rebates resulting from these instances will typically be applied in the following month. For further information, please contact us.

 

Lump Sum Allowance

Under pension rules, there is a limit on the total amount of tax-free cash you can take across all your pension plans. 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 tax-free cash today, please confirm that, to the best of your knowledge, this payment will not cause you to exceed your Lump Sum Allowance. If you exceed this allowance, you may need to pay tax to HM Revenue & Customs, so it’s important to understand your position before proceeding. If you’re unsure about the question below or would like help, please stop and contact us. 

 

If you're requesting tax-free cash could you please confirm that, to the best of your knowledge, this payment request will not cause you to exceed your Lump Sum Allowance?

Get in touch for help

Give our customer service team a call on 0345 850 8953.

Lines are open 8am to 6pm, Monday to Friday, excluding bank holidays.

What you'll need when you call

Have your plan number ready when you contact us. You will find this on your statement or plan documents.

I confirm that my request is to add a taxable regular income payment to my Income Release plan
I confirm that my request is to add a tax-free regular income payment to my Income Release plan
I confirm that my request is to add a tax-free and taxable income payment to my Income Release plan
I confirm that my request is to take a one-off tax-free payment from my Income Release plan
I confirm that my request is to take a one-off taxable payment from my Income Release plan
I confirm that my request is to increase my existing regular income payment from my Income Release plan
I confirm that my request is to decrease or stop my regular payment from my Income Release plan

Please go back through the previous sections and review your answers. If your chosen options is still not selected, please get in touch by calling us on 0345 850 8953.

 

Please check the amount you are requesting (and dates where applicable) before submitting the form.  

6. Tell us how your plan should be invested

You’re in control of what happens to your remaining pension pot.  

It’s important to make sure your remaining pension pot is invested in the right way for you.  You should take this opportunity to review how it is invested.

Investment Pathways are investment solutions we’ve created for customers in drawdown without taking advice and are designed to meet specific retirement objectives.

How would you like your remaining pension pot to be invested?

We’re now going to ask you to choose an Investment Pathway. 

We offer a choice of four investment pathways, based on what you intend to do with your pension pot over the next five years (from the point you start accessing your pension pot, however you choose to do this). Each investment pathway invests in a mix of funds and asset classes and aims to meet different retirement needs. 

You can get more information about our range of investment pathways and receive support in making a decision by using our guidance tool (opens in a new window).

Other providers also offer investment pathways for the option you’ve chosen, so you may benefit from shopping around. MoneyHelper can assist you with shopping around through their investment pathways comparison tool. You can access the tool at moneyhelper.org.uk. You should be aware Royal London does not appear on the tool as we don’t offer drawdown products directly to the public. If you need any further information, please call us at 0345 850 8953. Please remember that Royal London cannot provide personal advice. 

Which option corresponds most closely to your current plans:

Investment Pathway 1 is our investment solution for customers who have no plans to touch their pension savings in the next five year and have a balanced attitude to risk. Investment pathway 1 is designed to deliver growth above inflation over the short-term for an investor entering drawdown.  

Can you please confirm you wish to proceed with Investment Pathway 1?

This is an investment solution for customers who plan to set up a guaranteed income (annuity) within the next five years and has a cautious attitude to risk. Investment pathway 2 is designed to maintain annuity buying power for customers looking to buy an annuity in the short-term.  

Can you please confirm you wish to proceed with Investment Pathway 2?

This is an investment solution for customers who plan to start taking money as a long-term income within the next five years and have a balanced attitude to risk. Investment pathway 3 is designed to deliver growth above inflation to support sustainable income withdrawal.  

Can you please confirm you wish to proceed with Investment Pathway 3?

This is an investment solution for customers who plan to take out all their money within then next five years and have a cautious attitude to risk. Investment pathway 4 is designed to offer the potential for above inflation growth while support short-term needs.  

Can you please confirm you wish to proceed with Investment Pathway 4?

Other investment options

If you want to make your own investment choice, you can also do this. You just need to contact us on 0345 602 1868.  

7. The key risks you need to be aware of

We want to help you make a confident and informed decision by highlighting some key risks for customers drawing from their Income Release plan. These could impact on your financial wellbeing and retirement.

Do you expect to use the money you take from your pension to help provide you with an income in retirement?

If you are expecting the money you take from your pension pot to help provide an income in retirement, you need to consider how long the money needs to last for.

Do you understand the tax implications of taking money from your pension savings?

25% of the funds in your savings account can be taken tax free, while the remainder is taxed as income.  Once you have used up your tax free allowance, future withdrawals will be taxed as income and the rate of tax you pay will depend on your total taxable income in that tax year. Please be aware that tax rules may change in the future and depend on individual circumstances.

Are you aware that taking money from your pension savings may impact on any means-tested benefits you receive?

If you receive any means tested state benefits, they may be reduced or lost when any money you receive from your pension savings is taken into account.

Are you planning on investing the money taken from your pension pot?

You may be charged for investing your money. You should consider those charges and see how they compare with the charges if you left your money where it is. You also need to consider the potential return you can get on your investment and the risks associated with getting that return.

Are you aware that pension scams exist, can be sophisticated, often appear to be legitimate and that you should be careful where you invest money taken from your pension pot?

Pension scams can be sophisticated, take many forms and often appear to be a legitimate investment opportunity. If you're thinking of taking money out of your plan to give to someone or to invest somewhere else, we’d recommend you take a few minutes to have a look around. It might just give you some extra peace of mind and it could also help you avoid losing all your hard earned savings to a fraudster. You can get useful information on current and known scams and how to avoid them at www.fca.org.uk/scamsmart (opens in new window).

Are you aware that any creditors you have may be able to make a claim for any money you receive from your pension savings?

Creditors may be able to make a claim for money you receive from your pension savings.

Do you understand that the effect of inflation means that, over time, the amount you can buy with the same amount of money goes down? You need to consider the impact that inflation will have on any amount taken

The effect of inflation means that, over time, the amount you can buy with the same amount of money goes down. If you're intending to use your lump sum to provide a retirement income, you need to consider the impact that inflation will have on it in the future.

Do you understand that the Money Purchase Annual Allowance (MPAA) will apply across all your defined contribution pension plans?
Do you understand that the Money Purchase Annual Allowance (MPAA) will apply across all your defined contribution pension plans?
Do you understand that the Money Purchase Annual Allowance (MPAA) will apply across all your defined contribution pension plans?

If contributions of more than £10,000 a year are made to any Defined Contribution pension arrangements, including those made by you or your employer, you will normally incur a tax charge. This limit is known as the Money Purchase Annual Allowance (MPAA).

We have explained the risks associated with accessing your pension savings. Do you accept these risks, or would you like to discuss these further?

It’s important that you understand the implications of the decision you’re making. If you’re not sure you understand the risks involved, have another read through our risk warnings, or please contact us on 0345 850 8953 to discuss further.

8. Your details

Please complete all the information below and click 'Submit' to complete your request. We'll check the information you provide against our customer records to verify your identity and process your request.

Title
You will find this on your statement or plan documents
You will find this on your National Insurance card, benefit letter, payslip or P60 Please use the format AB123456C
This may be used for online access related enquiries or call backs.

9. Payment details

Are we paying to the same bank details as the last payment you received?

Please provide details of the bank account to which payment should be made.

Please note that the account must be in your sole name or joint names and NOT be a business account, Post Office account, Individual Savings Account (ISA), Building Society Account or overseas bank account
Must be 6 digits long
Must be 8 digits long

10. Verifying your identity

We may need to complete some identity checks to comply with money laundering regulations.

We do this electronically using a 3rd party, by comparing name, address and DOB against databases, which includes the electoral register and records held by fraud prevention parties. A record of this search will be held by the 3rd party.

If you don’t want us to complete any electronic checks, please call us on 0345 850 8953.

11. What to expect next

Before submitting, please be aware and accept that if tax becomes payable due to:

  • Using a large portion of your tax-free lump sum to make additional pension contributions in a way that HM Revenue & Customs considers inappropriate (sometimes referred to as "recycling of tax-free cash"), or
  • Providing incorrect or inaccurate information in any relevant section of this form,

You will be responsible for paying any tax penalty imposed by HM Revenue & Customs. Alternatively, you will be required to repay Royal London for any tax penalty we may incur. If you're unsure, please do not continue with this form. Instead, get in touch with us by calling 0345 850 8953.

 

What happens once I submit?

If this is your first taxable income request or you're using any part of your tax-free allowance, we'll create an illustration to help you understand how taking an income payment might affect your pension pot. Please read this information carefully. If you wish to proceed, you will need to reply to this email to confirm. Once we receive your confirmation, we'll start processing your request. Please keep an eye out for an email titled ‘SAFE: Royal London online form- reply required’ (please check junk/spam folders too).

If this is not your first taxable income payment or you are not using your tax-free allowance, we will start to process your request and we will not provide an illustration.

We aim to start processing your request within 5 working days. It will then take a further 3-5 working days for the payment to reach your account.

 

Declaration

I agree that should tax become payable because I either (i) recycle tax-free cash or (ii) have not provided the correct information in section 4 of this application form, then I’ll pay any tax or penalty that may be imposed by HM Revenue & Customs, or I’ll reimburse Royal London for any tax penalty they may incur.