Retirement income

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 SIPP 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.

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 AnnuityFlexi-access drawdown
Cash in your client's money, and pay tax on savings over 25%1 of their total pot Guarantees an income for life but with limited flexibilityProvides an income while their fund remains invested but their income isn't guaranteed
Guaranteed income for life Not applicable YesNot applicable
Pass savings to loved ones Yes Extra costYes
Make changes if needed Yes Not applicableYes
Growth potential Yes Extra costYes

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.