As one of our Retirement Account customers you can change how much income you take and when you take it.
What to think about
Think about income tax
You should be aware that any flexible income or lump sums you pay yourself from your Retirement Account could change how much Income Tax you pay. So, you might want to think about reducing your flexible income because it can reduce your tax bill. Reducing your income to pay less in tax could also mean your money might last longer.
Important - if you are taking large lump sums
Taking a taxable lump sum could have a more significant effect on your tax, because it’s taxed as earned income for the year you take it. It could even increase your tax bracket and the rate of income tax for that year. You might want to think about splitting your lump sum over more than one tax year.
Please be aware that your tax depends on your circumstances, which can change. Tax rules can also change in the future. If you are a Scottish or Welsh taxpayer the tax relief you will be entitled to will be at the Scottish or Welsh rate of income tax, which may be different from the rest of the UK.
What you can do
Change your income
If you decide you want to make changes to the amount of income you take, or take a single lump sum, you can do this on the phone.
Call 0345 835 6644. We’re open between 8am and 6pm from Monday to Friday and 9am to 12.30pm on Saturdays. Please have your Retirement Account number to hand when you call us.
Important – Once you start taking taxable income you will have a limit on how much you can save in any Money Purchase Plan. At the moment, this limit is £4,000 a year.
Choose a guaranteed income (annuity)
You can always use your retirement money to choose a fixed income, where you don’t have to make any investment decisions and your money will never run out.
Speak to your financial adviser or call and speak to a Scottish Widows adviser today (existing customers only) on 0345 835 6644.
Before you make any choices, we recommend you shop around to find the best deal for you.