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Lifetime allowance and benefit options
The main purpose of a pension is to provide an individual with an income when they reach a certain age.
This section provides information on the way benefits can be taken and the limits, protections and allowances that are available to your clients.
Basics
Basics
This analysis focuses on when benefits can be taken, summarises the main options available and also looks at the restrictions that apply.
Case studies
Income drawdown
Income drawdown
One of the most popular options is income drawdown. There are two types: capped and flexi-access drawdown.
Flexi-access drawdown
Since 6 April 2015 any new drawdown plans must be a flexi-access drawdown plan.
What is flexi-access drawdown?
Capped drawdown
New capped drawdown plans were only available until 6 April 2015. Existing plans can continue as long as the GAD limit is not exceeded.
Capped income drawdown and review dates
Beneficiary drawdown
Beneficiary drawdown is a death benefit option.
CPD | Income drawdown
Here we look at the market trends since pension freedoms began in 2015, including changes in withdrawal patterns and the consideration of changes in the demographics of UK society. Craig also talks about the retirement outcomes review (ROR), how this has changed at retirement advice and much more including best practice in FAD file construction how to review income drawdown plans in a compliant and cost effective manner. Recorded on 18 November 2020.
Income drawdown - the good, the bad and the ugly
CPD |Centralised retirement propositions
In this webinar, we explore the intricacies of centralised investment proposition (CIP) and centralised retirement proposition (CRP) frameworks, their relationship with the PROD rules and looks at how the financial planning community has been adopting and integrating these models within formal advice processes. Recorded on 19 November 2020.
Centralised retirement propositions
CPD | Transfers in drawdown
In this webinar we consider whether the drawdown plan remains suitable to achieve the client's needs and objectives on an ongoing basis. We also cover some of the legislative aspects advisers need to be aware of, the Retirement Outcomes Review and the PROD rules (in the context of transfers in drawdown), and more.
Lifetime allowance
Lifetime allowance
There is a maximum amount that can be taken from a pension scheme without being subject to tax. This is called the lifetime allowance.
Lifetime allowance - All you need to know
Benefit crystallisation events and the lifetime allowance charge (pre 6 April 2023)
Lumps sums
Lump sums
Sometimes it's possible to exchange all pension benefits for a one-off lump sum.
Uncrystallised funds pension lump sums
Emergency rate tax
An explanation of when emergency rate tax applies and how to get it back.
Reaching age 75
Reaching age 75
We look at reaching age 75 in our top five FAQs
Reaching age 75: our top five frequently asked questions
CPD | Planning for age 75
This webinar discusses how tax relief on pensions changes at age 75 as well as the potential advantages and disadvantages of retaining uncrystallised benefits after age 75. We also talk about the benefit crystallisation events which occur at age 75 and use examples to bring these to life.
Recycling
Recycling
Once benefits have been taken, it's possible to re-use this money and pay it back into a pension. However, you won't be surprised to hear that there are rules and restrictions in place.
Retirement benefits in public service pension schemes
Retirement benefits in public service pension schemes
This interactive policy paper looks at the wider rules of the Teachers’ and NHS pension schemes and how members can claim their benefits.
Read the policy summary (PDF)
Our frequently asked questions
Our frequently asked questions
Here we look at some of the questions we are asked most often.
Ask a question
Ask any specific questions you might have about the world of pensions or protection to our technical experts.