Take it all in cash

This information is for existing customers who are choosing to take all their pension in cash.

1 Final checks

Important considerations before taking all your pension in cash.

Eligibility

  • Age

    You must normally be aged 55 or over.

  • Pension pot size

    There is no minimum or maximum pot size

  • What happens if I am in ill-health?

    If you are in ill health you can take your pension benefits before age 55. If you are in serious ill health you can take your pension as a full lump sum tax free. Serious ill health means you have been diagnosed with less than 12 months to live. If this is the case, please contact us and we will talk you through the options available


Before you proceed

  • Tax implications

    Normally 25% of your lump sum is tax free with the balance taxable at your marginal rate of income tax. The tax benefits of your plan depend on your individual circumstances. Your circumstances and tax rules may change in the future.

  • Your money could run out

    You could be left with no source of income for your retirement other than any State Pension.

  • Money Purchase Annual Allowance

    Cashing in your pension pot may mean you will be subject to the Money Purchase Annual Allowance (MPAA). This means that any contributions you or your employer pays on your behalf to money purchase pensions will be liable to a tax charge if they exceed £4000 per annum (2017/18 tax year). If your lump sum qualifies as a ‘small pot’ (£10,000 or less and no more than three pots taken) then the MPAA restriction will not apply. The three pot limit does not apply to occupational pensions taken as a ‘small pot’.

Other things to consider

2 Understand the process

Once you request all your pension in cash you cannot change your mind.

1

Secure online form

Request your cash using our secure online form. You’ll need your policy and bank account details to hand.

2

Request processing

We’ll process your request within 5–10 working days (if for any reason it will take longer than 10 working days we will contact you to advise).

3

Receive payment

We’ll pay your cash (less the tax that’s due). The amount of tax you pay immediately will depend on the size of your pot and whether or not it qualifies as a ‘Small Pot’. You can calculate how much tax you could pay before requesting your cash.

4

Notify providers

If you have any other money purchase pension plans, you must let the providers of those plans know within 91 days that you've taken a pension pot in cash, except where ‘small pots’ rules apply. Failure to do so will incur a fine by HMRC.

3 Request your cash

Taking your cash is a one off decision.

Once you submit the form you cannot change your mind.

Take all your pension in cash