Looking for a simple and tax-efficient way of accessing your pension money? Have total pension savings of £25,000 or more and happy for it to remain invested? If you're new to investing or just don't have the time Standard Life Active Retirement could be right for you.
- Set up a regular income or dip in and take cash withdrawals whenever you want
- Let our experts make the day-to-day investment decisions
- Keep your pension savings invested, giving your money the opportunity to grow
What is Standard Life Active Retirement?
It's been specially designed for people who want to take a flexible income (drawdown) from their pension savings but aren't confident making investment decisions or don't have the time. It lets you take your money as and when you like - as either a regular income or lump sum withdrawals.
If you choose Standard Life Active Retirement, our experts will:
- Choose the funds that Standard Life Active Retirement invests in
- Spread your investment risk at the start of your retirement, by investing across three pots (or funds), each with a varying level of risk
Remember that all funds can go down as well as up in value and investment growth is not guaranteed and you may get back less than you originally invested, so you should keep track of your investments.
You'll be able to:
- Take an income - and change this any time you want
- Dip in to your pension savings and take a cash withdrawal any time you like
- Top up your pension savings, subject to tax limits
- Keep your pension savings invested, giving them the potential to keep on growing
- Change your mind and buy a fixed income (annuity) for life, at anytime
- Move to other investment options at any time
- Take income tax-free - the first 25% is normally tax-free
- Pass what's left to your loved ones, 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, they'll be able to access it flexibly, at any age.
You can access your pension savings anytime 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 pension savings stay invested, you'll have to be comfortable taking the risk that your money won't last as long as you need it to. 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 55 or over and looking for flexible access to your pension savings
- You're planning to take withdrawals from your pension in the next five years and the remaining money to last for more than five years
- You're comfortable leaving your pension invested in a medium risk investment which may fluctuate in value frequently and at times significantly
- You want to pass on your remaining pension savings when you die
- You're happy to keep track of your pension savings and make sure your money lasts as long as you need it to
This could be a good option if you want to balance lower risk investments for the money you want to take initially and medium risk investments for longer term growth. But if you're not planning to take any money, other than your tax-free lump sum, in the next five years, or if you're planning to take all your money out over the next five years, this option may not be right for you.
Remember that all funds can go up and down in value and investment growth is not guaranteed and you may get back less than you originally invested, so you should keep track of your investments.
Can I choose Standard Life Active Retirement?
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 savings will remain invested, there’s a risk that your investments could go down in value and not be able to sustain your income.You need to be comfortable being invested in a medium risk investment which may fluctuate in value frequently and at times significantly
Sustainability of incomeThe sustainability of your retirement income is affected by the investment performance of Standard Life Active Retirement, how much income you take and how quickly you take it, and how long you live for. There’s no guarantee that your money won’t run out if there are market falls, particularly in the early years.
- There are other risks - see our guide for more information
Interested in flexible income? Call us on 0800 032 8610
Call charges will vary.
What if Standard Life Active Retirement isn’t for me?
Standard Life Active Retirement is designed for people leaving their money invested and taking it out flexibly over more than five years.If you plan to take all your money within five years, set up a fixed income (annuity) within five years, or don't plan to take any withdrawals for at least five years, we have different options.
- If you plan to take all your money within five years, our easy option is the Short Term Income Fund. Find out more in the fund factsheet.
- If you're planning to set up a fixed income (annuity) within five years, our easy option is the Annuity Targeting Pension Fund. This fund is designed to move in line with the cost of setting up a fixed income to give you more confidence about the amount of income you'll get. It uses medium risk investments, so can go up and down in value, sometimes quite significantly. Find out more in the fund factsheet.
- If you don't plan to take any withdrawals for at least five years, you can choose one of our MyFolio Managed Funds. You choose the fund that's right for you based on your attitude to risk. Our experts will then aim to produce the best possible returns for the level of risk you're happy taking. Find out more about our MyFolio Managed Funds.