- Retirement
- Join a webinar
- Retirement Event FAQs
Retirement Webinar - Questions and Answers
The value of your investment can go down as well as up and you may get back less than you paid in. Laws and tax rules may change in the future. Your own circumstances and where you live in the UK also have an impact on tax treatment.
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Yes, you should’ve received an email with a link to view the video On Demand. If you've not received this within 24 hours, please contact us at retirementevents@standardlife.com.
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From age 50, you can get free impartial guidance from Pension Wise, a service from MoneyHelper. You can receive support over the telephone, on a face-to-face basis or by using their website. You can also contact Standard Life, or your pension provider, with any queries securely over the phone or online.
1. Webinar Questions
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If your pension plan has the option of income drawdown, you may be able to take your tax-free lump sum(s) from the age of 55 (rising to age 57 on 6 April 2028) and leave the rest invested; otherwise you may need to transfer your plan into a pension that allows this. Check with your pension provider if you're unsure. The minimum age is subject to change. For more information about the investment options available to you if you decide to do this, read our guide 'Choosing investment options in retirement'.
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Yes, you can take tax-free lump sum(s) and continue contributing, if the plan allows it.
However, if you take more than your tax-free lump sum(s), the amount that you can pay in without a tax charge may reduce.
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Taking more than your tax-free lump sum(s) can trigger the money purchase annual allowance (MPAA), which reduces the amount that can be paid to defined contribution schemes, without tax charges from £60,000 to £10,000 per tax year. However, it's only contributions made after the trigger event that are tested against the reduced MPAA - it's not back-dated to the start of the tax year. All contributions (both before and after the trigger event) still count towards the overall annual allowance of £60,000.
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No, the entitlement to any tax-free lump sum(s) is only available to the original plan holder.
However, if you die before age 75, any lump sum or pension payment your beneficiaries receive will normally be tax-free, provided the lifetime allowance is not exceeded. From April 2027, the government have announced their intention to include unused pension savings when calculating the value of estates and could be subject to inheritance tax. The full details of how this will work are still to be confirmed.
If you die after reaching age 75, any lump sum(s) or pension payments received will be subject to income tax at the beneficiary’s marginal rate of tax.
Choosing a beneficiary lets your pension provider know who you want your pension to go to and they can take this into consideration. If you’ve not chosen a beneficiary you can do so by logging in.
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Each pension plan has its own tax-free lump sum(s) entitlement so normally you could get up to 25% tax-free lump sum(s) from each pension plan until the Lump Sum Allowance (LSA) is reached.
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The amount of tax-free lump sum(s) allowed is normally 25% of the value of the pot being accessed to provide benefits.
So if taking your tax-free lump sum(s) in stages, the amount still available normally increases (or decreases) in line with the value of the remaining pension pot.
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Yes the maximum amount of tax-free money you can usually take from all your pensions combined is £268,275, known as the Lump Sum Allowance (LSA).
2. Tax-free lump sum(s)
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You can usually transfer other pensions into your Standard Life pension. This could make it easier to manage your money. However, it’s important to check with your other providers that you won’t lose any valuable benefits or guarantees. Transferring isn't right for everyone.
You can transfer your pensions using our online services.
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Standard Life will not charge you to transfer other pensions in. However, if you receive advice from a financial adviser, there will likely be a fee involved. You should also check with your current provider to see if any charges or penalties will be applied on transfer, or if any valuable guarantees or other benefits could be lost.
3. Bringing your pensions together
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Normally you can take your pension from age 55 (This will rise to age 57 on 6 April 2028); however there are some situations where benefits can be paid before 55.
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Guaranteed income: This option allows you to take your tax-free lump sum(s) and be paid a guaranteed income for the rest of your life. You choose how you want to set up the annuity and what you want to happen when you die. How much you get as an income depends upon a number of factors including the value of your pot, your age, where you live, marital status, dependents, annuity rates and options, and health and lifestyle choices. Once the annuity has been set up it is payable for the rest of your life and cannot be changed. You no longer have access to a pot that you can withdraw from but you know the income will continue until you die.
An annuity can also be set up with a guarantee period or a spouse's annuity after death whereby if the annuitant passes away before the end of the guarantee period, the remaining payments go to a beneficiary.
Flexible Income: This option allows you to take some or all of your tax-free entitlement and leave the rest of the money invested. It gives you the flexibility to take lump sums or regular income whenever you need it. The remaining money will continue to be invested so there are no guarantees and the value of the pot can go down as well as up. Your income stops when your pot runs out, but you will have the flexibility to take what you want, when you want, until the pot runs out. You must be prepared to review and manage your withdrawals and investments. You'll continue to pay investment charges. Your state benefits could be affected so you should check this before going ahead. Any money left in the pot on death can pass on to your family or friends. You still have the option to buy a guaranteed income (annuity) at any time.
For both options, it is important to shop around. Other providers may offer a higher level of retirement income, and different options more suited to your individual circumstances.
Compare and Contrast: Flexible Guaranteed Pension pot passed on to my family when I die Guaranteed whatever happens to the stock market Can change my income any time I like Guaranteed to last as long as I live -
We recommend you get guidance or financial advice before making any decisions.
- You can get free impartial guidance over the phone or face to face, from age 50 with Pension Wise. Go to www.moneyhelper.org.uk/pensionwise or call 0800 138 3944
- If you don’t have a financial adviser then you can find one on www.moneyhelper/retirement-adviser
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Tax is deducted at source under Pay As You Earn (PAYE), before it reaches your bank account. Sometimes an emergency tax code is used initially which can result in an overpayment of tax. Where this happens, you may have to reclaim any overpaid tax.
4. Taking my pension benefits
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If you have a pension with Standard Life you can review where your money is invested by logging in .
To help you review your pension, we have a number of online tools. Discover how much you could have in your pension pot in the future with our Pension Calculator.
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You may be able to choose the same funds you are currently invested in. It’s always a good idea to regularly review your investments to make sure they remain on track and continue to meet your changing needs. Most plans will give you access to a range of funds covering different types of investments, regions and investment styles. For more information on the investment options available if you choose to leave your money invested and take a flexible income, read our guide 'Choosing investment options in retirement'.
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We have an independent Risk Questionnaire that can help you understand how much risk you're comfortable taking with your investment.
We also give all the funds we make available to you a volatility rating (0 - 7) which indicates how much the fund price might move compared to others. Typically, funds with higher volatility ratings have greater potential for higher investment returns over the long run. But they’re also more likely to suddenly fall or rise in value.
5. Investments
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No, if you are only taking tax-free lump sums, the annual allowance is unaffected.
If you subsequently start to take income from the drawdown fund, the 'money purchase annual allowance' would be triggered at that point and payments into all your defined contribution pension plans would be restricted to £10,000. See ‘Tax free lump sum(s) section above for more detail.
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There is no limit to how much you can pay into a pension. However most pension providers only take pension contributions that receive tax relief - the maximum contribution an individual can get tax relief on in a tax year is the higher of 100% of their UK earnings or £3,600.
But you also need to consider the annual allowance, which is the maximum that can be paid in total to your pension plans before a tax charge applies. If your annual allowance (plus any unused allowance carried forward from earlier years) is exceeded, there’s a tax charge on the excess. Remember, any contributions made by your employer or a third party also count towards your annual allowance.
Taking more than just tax free lump sum(s) from your pension can trigger the money purchase annual allowance (MPAA) – see the earlier question about taking more than just tax-free lump sum(s) for more details.
6. Annual Allowance
Didn't quite answer your question?
If you're still looking for more answers Standard Life customers can find out more about our online services on our website. Or check our support page for other FAQs and ways to get in touch.