For those with occupational pension plans, the lump sum option could exceed 25% of your pension savings, so check with your pension provider. We will let you know if this applies to your Countrywide Assured occupational pension plan.
B. Take an income from your pension
It’s still possible to use pension savings to ‘buy’ an income that lasts for life and doesn’t run out. It’s called an 'Annuity' It’s an insurance product that provides a guaranteed income at retirement, either for life, or a set period. . It comes in different shapes and sizes depending on a person’s individual circumstances. But what’s common to all is regular income for life. AND it’s also possible to combine all existing pension savings to buy one annuity, which is likely to attract a higher income than buying lots of individual ones. Do bear in mind that an annuity cannot be undone once it’s been set up. This option still offers the opportunity to have up to 25% of the pension money as a tax-free lump sum and to use what’s left to buy an annuity.