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Retirement Income

Benefit choices from age 55

  • Moving into Retirement Income by designation, immediate vesting or Drip Feed Drawdown can allow your client to take up to 25% (more if your client has a protected lump sum entitlement) of the value as a tax-free lump sum from each crystallisation amount.
  • No minimum income withdrawal amount
  • Transfers in on a capped drawdown basis can continue on that basis if required but can switch to flexible drawdown at any time
  • Income can be paid monthly, quarterly, half-yearly or yearly
  • Ad-hoc payments available
  • Amount and frequency can be changed at any time
  • Payments made by BACS, net of tax using PAYE
  • Buy an annuity or transfer to another provider at any time.

Other

  • 100% allocation and no bid/offer spread
  • Dedicated customer service team with direct telephones and email
  • Online servicing.

Tax

  • Retirement income may be liable to personal income tax
  • Tax treatment depends on the individual circumstances of your client. Tax rules and your client’s circumstances may change in the future
  • Tax charges will normally apply if the Government’s ‘Annual Allowance’, ‘Tapered Annual Allowance’, ‘Money Purchase Annual Allowance’ or ‘Lifetime Allowance’ is exceeded.

Risks

  • The value of your client’s Account can go down as well as up, and could fall below the amount(s) paid in
  • If any income and the charges deducted from your client’s Account are more than any investment growth, the value of their Account will go down. This could reduce the amount of income that they can take in the future and the income from any annuity bought later
  • High levels of income may not be sustainable and in some cases could reduce the value to zero. You should consider the impact this might have on your client’s income in retirement
  • The income from your client’s Account and any annuity bought later may be less than they could have received if they had bought an annuity at the start
  • Some investments, such as property, can take longer to buy and sell than others. This may delay switching between investments and when benefits or any transfer payments can be taken.

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Scottish Widows Limited. Registered in England and Wales No. 3196171. Registered office in the United Kingdom at 25 Gresham Street, London EC2V 7HN. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Financial Services Register number 181655.

Scottish Widows Unit Trust Managers Limited. Registered in England and Wales No. 1629925. Registered Office in the United Kingdom at Charlton Place, Andover, Hampshire SP10 1RE. Tel: 0345 300 2244. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 122129.

HBOS Investment Fund Managers Limited, registered in England number 941082. Registered office in the United Kingdom at Trinity Road, Halifax, West Yorkshire HX1 2RG. Authorised and regulated by the Financial Conduct Authority. Financial Services Register number 119223.

Scottish Widows Bank is a trading name of Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales, no. 2065. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under number 119278.

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