For intermediaries only
ARC's flexible retirement income options
Aegon Retirement Choices (ARC) can stay with your client throughout their working life and into retirement. Many people now choose a more gradual transition from working life into retirement, and ARC is flexible enough to support a phased approach.
ARC offers a seamless transition from saving to taking an income, with a range of flexible options to suit your clients’ needs. With the ARC self-invested personal pension (SIPP) your clients can choose:
- how they take their income and any tax-free cash (after 55);
- how much income they take;
- when they start taking income;
- to keep their money invested until they need it, and
- to draw cash lump sums.
Your clients now have broadly three income options available to them when they want to take benefits from their retirement savings, these are:
- flexi-access drawdown;
- annuity, and
- cash lump sums.
ARC can help you facilitate each of these, or use them in combination to build your clients' overall retirement income.
|Cash lump sum||Annuity||Flexi-access drawdown|
|Cash in part of your client’s pension, and take a tax free lump sum of 25%1 of their total pot.||Guarantees an income for life but with limited flexibility.||Provides an income while your client’s fund remains invested. This income may be subject to tax at your client’s marginal rate.|
|Guaranteed income for life||Not applicable||Yes||Not applicable|
|Pass savings to loved ones||Yes||Extra cost||Yes|
|Make changes if needed||Yes||Not applicable||Yes|
|Growth potential||Yes||Extra cost||Yes|
1 The amount of tax-free cash available may vary depending on circumstances and any guarantees previously secured.
The value of an investment can fall as well as rise and isn’t guaranteed. Your client could get back less than they originally invested.