Designed for customers planning to leave their money invested and take it out over more than five years. It gives you a balance of lower risk investments for the money you take initially and medium risk investments for longer term growth.
We make the day-to-day investment decisions, you stay in control
- Our investment experts review the funds in each pot to ensure that Standard Life Active Retirement is performing in line with expectations.
- You can take your money as you want – whether that’s as a regular income or lump sum withdrawals.
- Your money stays invested so has the opportunity to grow in value.
- You spread your investment risk, particularly at the start when you’re invested across lower and medium risk.
As with any investment, the value of your funds can go up or down, and may be worth less than was paid in.
We'll invest your money across three pots (funds) based on how you've told us you want to take it:
Lower risk investments designed to remain fairly stable
Lower to medium risk investments aiming to provide a better return than Pot 1
Medium risk investments, aiming to provide a higher return over the longer term
Our investment experts choose where to invest the money in each pot. They review the pots regularly to check they’re meeting their aims, and can make changes to the investments in the pots if they think it’s appropriate.
When you come to take your money, it will come from Pot 1 first until it’s empty, then Pot 2 and finally Pot 3. This means Pot 3 has a chance to grow while you spend money from the lower risk pots.
When you first invest, we’ll split your money across the three pots based on how you’ve told us you want to take it. It’s then up to you to regularly check how much you have in each pot, and split it across the three pots again if you want. You may want to consider doing this if you take a significant amount from your plan or your income needs change.
The 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.
It’s important that you regularly check the sustainability of your retirement income to make sure that you don’t run out of money too soon.
Standard Life Active Retirement might be right for you if:
- 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.
- 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.
Important things to think about
- Overall, you need to be comfortable taking a medium level of investment risk – at times your investments may go up and down significantly. But because the amount you have in each pot will change, the amount of risk you’re taking will change over time.
- If you’re willing to take more risk, for example if you have sources of guaranteed income, other options may be more suitable for you.
- If you’re not planning to take any money, other than your tax-free lump sum, in the near future, this option may not be right for you.
- At the start, we’ll decide how much money goes into each pot. But then it’s up to you to regularly check this and, if you want to, split your money across the pots again.
- It’s also up to you to decide what you take out and when, and to check that your money will last as long as it needs to.
- If you choose Standard Life Active Retirement, you can’t invest in any other funds through your pension plan.