When you come to use your account from the Emerson UK Pension Plan, there are a range of options available to you. You can choose to purchase a guaranteed income for the rest of your life (an annuity), you can choose to withdraw it all as one (or two) cash lump sums, or you can keep it invested and withdraw amounts as and when you wish to (drawdown). You can also mix and match these options, for example use part of your account to purchase a guaranteed income and transfer the rest to a drawdown arrangement. With any of these options, you are also able to take up to 25% of your account as tax free cash (within certain limits).
If you purchase an annuity, this will be from an insurance provider and your account (after a tax free cash lump sum has been paid) will be transferred to that insurer. The Trustee recommends that you shop around to get the best price.
If you elect to take taxable cash, this will be paid directly from the Plan to your bank account in either one or two lump sums. Please contact the Plan’s administrator if you wish to withdraw your account as cash.
If you wish to keep your account invested and withdraw it when you wish, you will need to transfer to a drawdown arrangement outside of the Plan. There are many different types of drawdown arrangement available in the market, which all offer different features. Members often report that trying to find an appropriate arrangement is both daunting and expensive. The Trustee has therefore decided to facilitate access to a drawdown arrangement called LifeSight. This is not a recommended option, and will not be the best option for all members, but it is a simple, transparent, self-service arrangement which the Trustee feels offers good value to many members who wish to access drawdown.
What can LifeSight offer you?
- Flexibility - You access your savings as and when you need them
- Accessibility - Ease of access through your personal online Account
- Choice - Invest your savings in a way that matches with your goals
- Planning - Online tools to help you see when your savings will run out
- Support - Ongoing touch-points to help you manage your savings
- Protection - A Trustee Board responsible for looking after assets
Further information about LifeSight can be found by going to www.lifesight.com/drawdown.
On the ‘Home’ tab there are guides that explain the key features of LifeSight. The ‘How to join tab’ explains how you can apply for LifeSight and how you can contact the team with any questions.
We’ll also be producing a detailed ‘Retirement Guide’ which will provide more information on the options available to you.