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  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

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Before you start

You can use this form if you already have an Income Release plan and want to start regular withdrawals, 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

Before you complete your request, you should make sure that you have enough money in your plan to take the income payment and you understand the impact this will have on the rest of your pension savings.

Your income can be taxable or tax-free. 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.

Any income you take will be taken proportionately across all the funds you're invested in.

If this is your first regular income payment or you are utilising your tax-free allowance, we will issue an illustration to help you understand how taking the income payment might affect your pension savings. You will need to confirm that you wish to proceed before we will process your request.

If this is not your first income payment and your payment does not include a tax-free element, we will issue an illustration to help you understand how taking the income payment might affect your pension savings. We will then continue to process your request.

 

Got questions? We’re here to help

Please continue with this form only if you’re confident in your choices. If you have any questions or concerns, we’re here to help. Get in touch by sending us an email or call us on 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:

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.

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 between 1st to 28th of the month.

If you select 6th, 7th,8th or 9th of the month, there may be instances when a tax deduction is higher than you expect, due to 2 payments falling in one tax month. If the payment date falls on a bank holiday or weekend we pay the working day before.  Tax Rebates due from these instances will often be applied in the following month. Please contact us by phone for further information if required.

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.

Do you want this payment to be made in the current tax year?

The request must have reached us by 25/03/2025 to guarantee any payment in the current tax year. A confirmation email will be sent once the payment has been processed.

If this is an ad hoc taxable income payment, we will process the payment early in the new financial year but cannot guarantee a specific date. You will receive a confirmation email once the payment has been processed.  Please note that depending on your tax code, taking a payment early in the new tax year often results in a higher initial tax deduction.

 

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.

Do you want this payment to be made in the current tax year?

The request must have reached us by 25/03/2025 to guarantee any payment in the current tax year. A confirmation email will be sent once the payment has been processed.

We will process the payment early in the new financial year but cannot guarantee a specific date. You will receive a confirmation email once the payment has been processed.  Please note that depending on your tax code, taking a payment early in the new tax year often results in a higher initial tax deduction.

 

Increase my existing regular income

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 between 1st to 28th of the month.

If you select 6th, 7th,8th or 9th of the month, there may be instances when a tax deduction is higher than you expect, due to 2 payments falling in one tax month. If the payment date falls on a bank holiday or weekend we pay the working day before.  Tax Rebates due from these instances will often be applied in the following month. Please contact us by phone for further information if required.

 

Decrease or stop my regular income

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 between 1st to 28th of the month.

If you select 6th, 7th,8th or 9th of the month, there may be instances when a tax deduction is higher than you expect, due to 2 payments falling in one tax month. If the payment date falls on a bank holiday or weekend we pay the working day before.  Tax Rebates due from these instances will often be applied in the following month. Please contact us by phone for further information if required.

 

Lump Sum Allowance

Under pension rules there are limits on the amount of tax free cash you can access from your pension plan. This is known as Lump Sum Allowance (LSA). The LSA is set at £268,275 and payments above this are 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, by taking this payment you will not 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. 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.

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 will apply to your plan?
Do you understand that the Money Purchase Annual Allowance will apply to your plan?
Do you understand that the Money Purchase Annual Allowance will apply to your plan?

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.

7. 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.

8. 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

9. 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.

10. What to expect next

Once you click submit request, we will create an illustration to help you understand how taking an income payment might affect your pension savings.

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 and you are not utilising your tax-free allowance, we will start to process your request.

If this is your first taxable income payment or you are utilising your tax-free allowance, please read the information carefully, and if you wish to proceed, you must simply reply to the email to confirm this to us. Once we receive this confirmation from you, we will start to process your request.

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.

 

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.