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The Retirement Account from our partners at Scottish Widows could make investing in your future a whole lot easier.
*Source: Defaqto Annual Product Ratings – April 2023
Appetite to risk |
How your pension pot could perform |
---|---|
Appetite to riskCautious You’re cautious with your investments and don’t feel comfortable taking much risk with your money. |
How your pension pot could performYou can expect your pension pot to have some ups and downs in value. While there‘s potential for some growth, there‘s also potential for some losses. |
Appetite to riskBalanced You’re happy to take some risk with your investments for potentially more reward. |
How your pension pot could performYou can expect your pension pot to go up and down in value. While there‘s potential for growth, there‘s also the potential for losses. |
Appetite to riskAdventurous You’re willing to take higher risks with your investments for potentially higher rewards. |
How your pension pot could performYou can expect your pension pot to have a lot of sharp ups and downs in value. While there‘s potential for high growth, there‘s also potential for significant losses. |
Default option
Our default investment strategy is a balanced Governed Investment Strategy (GIS) that targets flexible access at retirement.
Things to consider before you decide
If you're unsure we’d recommend that you speak to a financial adviser, who will normally charge you for this advice.
For more information on how your money is invested with the Retirement Account, read our investment guide.
The options to consider are:
This type of income is called an annuity.
How does it work?
You can normally take up to 25% of your pension pot as a tax-free cash lump sum then use the rest to buy a regular guaranteed taxable income for life.
There are different types of annuity which can affect how much income you would get.
For example - You could choose to buy an increasing income, which would mean a lower starting income. You could also choose to provide a continuing income for a loved one after you die, which would reduce the level of income you’d receive
Known as flexible access drawdown.
How does it work?
You can normally take up to 25% of your pension pot as a tax-free cash lump sum, and leave the rest invested. You can then take taxable withdrawals as and when you like, either as regular income or one-off lump sums.
The level of income you take and any investment growth will be key factors as to how long your pension pot will last and you may run out of money in retirement without careful planning.
Known as encashment.
How does it work?
You either take part or all of the value of your pension as a cash lump sum. The first 25% of each amount you take is tax-free and the rest is taxed at your highest tax rate by adding it to the rest of your income for that year. Please bear in mind this could take you into a higher tax bracket.
Be mindful - without very careful planning you could run out of money in your retirement.
The tax treatment depends on your individual circumstances. Your circumstances and tax rules may change in the future.
All pension funds have fees, but by combining your pensions into the Retirement Account you’ll benefit from:
We want to give you a clear picture of what it will cost once you set up a Retirement Account and invest in one of our Governed Investment Strategies (GIS). We’ll explain our charges and show you how much it will cost. You can use this to compare our charges against those of your old pensions.
The overall charge is made up of a service and investment charge, shown per year. This will automatically come out of your Retirement Account every month. If at a later date you choose to select your own funds outside of a GIS or move into a retirement income please be aware that charges, and therefore overall cost may differ, and may be higher.
Imagine you've got
£50k in your account
A charge of 0.3% =
£150
A charge of 0.1% =
£50
0.4% total = £200 a year
Just under £17 a month
Why choose us?
You can use the Mobile Banking app to keep tabs on your pension.
See at-a-glance how much your combined pension is worth – anytime, anywhere.
There is always some level of risk with any investment, the Retirement Account offers three levels of investment approach to risk, including a Cautious approach where the potential for both losses and growth is less than other options. Alternatively, the Balanced and Adventurous investments provide increasing potential for pension growth but also losses. We also offer a ‘Default’ option for those who are unsure. This is a balanced Governed Investment Strategy (GIS) that targets flexible access at retirement. You can always change this later.
When your account is set up, you’ll get access to the online Scottish Widows portal. Here you can:
You can also stay up to date with your pension’s value on the Halifax Mobile Banking app – anytime, anywhere.
Deciding to take money out of your pension soon after transferring to us is an important decision. We‘ll check with you to see if you‘ve had financial advice, or free guidance from Pension Wise. If you haven‘t, we‘ll double-check to see if you‘d like to do this before we go ahead with your transfer application. We can even book the appointment for you.
If you‘re in ill health, you may be able to take your pension benefits before ’the minimum pension age of 55 years old (rising to 57 in 2028). If you‘re in serious ill health, which means you‘ve been diagnosed with less than 12 months to live, you might be able to take your entire pension pot as a cash lump sum. This is tax-free up to the age of 75.
You can pass on the value of your pension to a loved one when you die, either as income or a lump sum. If you die before 75, your benefits are usually tax-free. If you die on or after 75 years of age, your benefits will be taxable. Keep us up to date with who you want to leave your pension to when you die. This person is known as a beneficiary.