Key facts

Retirement Control is a sophisticated pension plan that gives you flexibility and lets you:

• choose the level and timing of your income payments, subject to maximum levels set by HMRC using rates published by the Government Actuary Department*
• choose where your money is invested, giving you the potential for better returns
• actively manage the amount of tax you pay
• provide death benefits for your dependants
• take some or all of your tax-free cash

*Your financial adviser will be able to give you more information on GAD limits.

How it works

Your plan is made up of two separate accounts — your Retirement Funding Account and your Income Account.

Tax-free cash

You can usually take up to 25% of your fund in your Retirement Funding Account as tax-free cash (although you’ll need to confirm this with your financial adviser). How or when you take this depends on your own priorities.

Income limits

Taking too much income from your capped drawdown pension could reduce your fund and therefore your income. That’s why HM Revenue & Customs (HMRC) sets a maximum limit on the amount that you can take out of any drawdown pension. Your income limits are based on relevant rates published by the Government Actuary’s Department (GAD), which is why they’re called GAD limits.

Your financial adviser will be able to give you more information on the GAD limits that apply to you.

Charges

There are charges for managing the part of your plan invested in our pension fund range. We take these through deductions from your plan until you buy an annuity or you transfer your fund. Some charges are taken from the transfer and some from the fund.

We’ll show the plan charges in your personal illustration, which also shows the effect these charges may have on the value of your plan. We may vary our charges at our discretion.

What are the drawbacks?

The main drawback of Retirement Control is the greater degree of risk. For example:

• The value of an investment and any income from it can fall as well as rise and is not guaranteed. You may get back less than the amount originally invested. It depends on investment returns and future annuity rates. If the stock market falls, you may end up with less income than if you’d chosen the traditional annuity route.
• The value of your plan may reduce with the income you take and future investment returns are unknown. So it's important that you regularly review it to make sure you aren't taking too much income. On the plus side, if investment returns are good, you can take income and what remains in your plan will still grow.
• Annuity rates vary over time. If you leave it until the last moment to convert your fund into an annuity, you’ll have to accept the rates available at the time. Again though, if investment returns are good, the total fund you have available to buy an annuity may have grown. However, you should be aware that your investment can also fall and you may not get back the amount you originally invested.
• The charges you pay for Retirement Control may be higher than for a conventional annuity. A financial adviser can assess your attitude to risk, as well as your income requirements, to help you decide whether Retirement Control is suitable for you.

How to apply

Find out how to apply for our products and where you can find out more about the choices available to you.

How to apply

Plan today, enjoy tomorrow

Do you know how much you’ll need to live on when you retire? Our online tools can help you add up your current and future costs.