Looking for a simple and tax-efficient way of accessing your pension money? Have a total pension pot of £25,000 or more and want to choose and manage your own investments? Our DIY investment option could be a good choice for you.
- Set up a regular income or dip in and take cash withdrawals whenever you want
- Choose from hundreds of pension funds from leading fund managers
- Your money remains invested, giving it the opportunity to grow
What is our DIY investment option?
It's a flexible retirement option that lets you take an income as and when you like - as either a regular income or lump sum withdrawals. The rest of the money in your pension stays invested giving it the opportunity to keep on growing. If you're a confident investor, you'll be able to find the funds you're looking for quickly and easily.
You’ll be able to:
- Take an income - and change this any time you want
- Dip in and take a cash withdrawal anytime you like
- Keep your pension pot invested, giving it the potential to keep on growing
- Change your mind and buy a fixed income (annuity) for life, anytime
- Take income tax-free - the first 25% is normally tax-free
- Top up your pension, subject to tax
- Upgrade easily to a Self Invested Personal Pension (SIPP) for even more investment choice
- Pass on any remaining money, free of inheritance tax, when you die
- If you die before age 75, this will be completely tax free.
- If you die age 75 or older, your beneficiaries can have access to pension funds subject to tax.
Laws and tax rules may change in the future. The information here is based on our understanding in April 2019. Your personal circumstances also have an impact on tax treatment.
You can access your pension savings at any time from the age of 55.
Remember that if you choose a flexible income, your income isn't guaranteed. So it may not be suitable for everyone.
As your pot stays invested, you'll have to be comfortable taking the risk that your income won't last. This could happen if your investments fall in value or don’t perform well enough to sustain the income you want.
Remember that you don't have to take flexible income (drawdown) from your current pension provider. You can shop around.
You could transfer your pension to another provider and you might get a better retirement income.
Is it right for me?
- You’re comfortable leaving your pension invested
- You understand your retirement income goals and how much risk you’re prepared and able to take
- You’re confident choosing the types of fund you want to invest in
- You’re able to regularly review and monitor your investments
- You understand that your money isn’t guaranteed to last through retirement
Remember that all funds can go down as well as up in value and investment growth is not guaranteed, so you should keep track of your investments.
Can I choose the DIY investment option?
Yes, but you'll need to have one of our personal pensions. Don't worry if you don't already have one - you can transfer any pension you have to us quickly and easily. Transferring will not be right for everyone. There are a number of points to consider, as you could be losing money by giving up any valuable benefits or guarantees that your current plan offers.
What are the risks?
Investment riskAs your pension will remain invested, there’s a risk that your investments could go down in value.
Sustainability of incomeYou need to consider the longer-term impact of making withdrawals from your pension pot because you could run out of money too soon.