Retirement Benefits

It is possible to take benefits and remain in employment.  The retirement age will range between age 55-75 from the 2010/2011 tax year.  Early retirement can still be taken prior to age 55 on the grounds of incapacity or serious ill health.

Pension Commencement Lump Sum (PCLS)

The amount of PCLS available is generally 25% of the member’s uncrystallised funds unless the member has personal protection.

Income

The level of income payable is dependant upon factors set by the Government Actuaries Department (GAD).  Income can be deferred once the pension commencement lump sum has been taken.

Retirement Benefits pre 75

Secured Pension

A secured pension is a lifetime annuity purchased by the member’s fund with an Annuity Provider.

Annuity Purchase is available at any time from age 55.

Unsecured Pension

The scheme may provide a pension directly from the member’s fund through income withdrawal.  Alternatively the scheme may purchase a series of short term annuity contracts.

There is no minimum level of income.  The maximum that can be withdrawn annually is 120% of the rate supplied by the GAD.

Retirement Benefits post 75

Alternatively Secured Income

This is similar to unsecured pension.  There is no minimum amount of pension that must be taken.  However the maximum is 70% of the rate supplied by the GAD.  The rate applied will always be based on age 75.