Immediate Vesting Personal Pension Plan

You can take up to 25% of your investment as a tax-free lump sum. The amount of income you'll get then depends on the size of your pension fund, your age, sex, the pension options chosen and annuity rates when you take out your pension. Adding options generally reduces the amount of income that you'll get.

You can choose:

• how often the payments are made to you - this could be monthly, every three months, every six months or every year;
• when your payments will start - you can have them paid in advance so you'd get the first payment as soon as the annuity was set up, or in arrears;
• for your income to increase each year by a fixed percentage up to 8.5% per annum;
• for your pension to keep pace with inflation by changing in line with the Retail Prices Index (RPI). Be aware that RPI can go down as well as up so your income could go down;
• to provide an income for your husband, wife or civil partner and/or dependant(s) if you die before them;
• to guarantee that your payments will be made for a set period of time. This means that if you die within that time, payments will continue to the end of the guarantee period. You can choose a guarantee period of up to 10 years for an ordinary pension fund (this will be the value of payments made by you or your employer) or if you buy the plan with a lump sum. If your pension fund includes protected rights money, the maximum guarantee period for this part of your fund is 5 years.

If your pension fund includes protected rights, this part of your pension must continue to be paid to your husband, wife or civil partner upon your death at half the rate payable when you were alive.

Think carefully about the choices you make because once you've bought this plan and the 30 day cancellation period has expired, you can't change any of the options and you can't transfer to another provider.

The income you get will be guaranteed although if you have chosen annual changes in line with RPI then there is a chance the amount of your income could go down. If inflation falls below zero and becomes negative, your income will go down by the same amount.

£900 tax-free and a payment every year

If you buy an IVPPP Select for £2,880, tax relief is added to make it up to £3,600. We'll pay 25% of that which is £900 as a tax-free lump sum right away. Then we'll pay you a fixed regular amount every year for the rest of your life. It's as straightforward as that.

The amount of income you'll get depends on your age, sex and annuity rates when you take out your pension. There are no additional options to tailor the income you receive and you may have to pay income tax on the annual payments.

Payments will stop when you die and inflation could reduce the purchasing power of your income.

Any reference to legislation and taxation is based on Standard Life's understanding of law and HM Revenue & Customs practice at date of publication. Legislation and taxation are liable to change in the future.