Pensions Lump Sum
Find out more about getting a lump sum from your pension plan...
Most pensions will provide for a pensions lump sum, the amount of which will depend upon the type of pension plan.
Personal pensions and stake holder pensions will generally allow up to 25% of the accumulated fund value to be taken as a pension lump sum and this amount will be tax free.
The amount of pensions lump from an occupational pension is likely to be dependent on a number of factors including your salary at retirement at the number of years service with your employer.
Many pension investors use their pensions lump sum for ad-hoc luxury purchases such as:
- a new car
- holiday of a lifetime
Alternatively, the pensions lump sum can be invested in such a way as to supplement income in retirement.
If you are approaching retirement and are unsure of your options, including your tax free cash entitlement, then the Fair Investment Pensions Service may be of interest to you.
The Fair Investment Pensions Service will enable you to speak to an adviser who will:-
- Look at your total pensions portfolio
- Establish your tax free cash entitlement
- Compare the market to find the best annuity rates, if appropriate
- Advise you on your retirement options
- Analyse your overall circumstances and objectives
- Devise an investment strategy which best meets your investment objectives in retirement
If you think that the Fair Investment Pensions Service could help you, click on the link and an impartial adviser will contact you for a no obligation initial chat.
| Barclays Defined Returns Plan |  | Minimum Pension Investment £3,600 | |
| This capital protected plan has a choice of investment terms of 6 years offering a maximum return of 44%. Can be used for SIPP and SSAS pension investment. |
**Guaranteed gross income.
Disclaimer
Please bear in mind that:
- The above investment plans are designed as medium to long term investments.
- Past performance of the FTSE 100 should not be seen as an indication of future performance.
- The FTSE 100 Index measures only the capital value of the shares in the Index and no allowance is made for dividends paid by the companies in the Index.
- If you redeem a structured investment plan before the end of the term, you may get back less than the amount you originally invested. The value of the plan will be determined by the price at which the Investments can actually be sold on the relevant dealing date.
- The list of investment plans provided above should not be seen in any way as being a recommendation. No advice has been given and you should be aware that any investment which takes place will be transacted on an “execution only” basis.
- Full details of the funds, including investment performance statistics and risk profile will be provided in the documentation/brochure sent to you and it is up to you to ensure that you fully understand the nature of investment before proceeding. If you are at all unsure of the suitability of the type of investment, both in respect of its objectives and its risk profile, you should seek independent financial advice.
- The levels and bases of taxation and reliefs from taxation can change at any time and the value and availability of any tax reliefs depends on your individual circumstances. Any favourable tax treatment of SIPPs and SSASs may not be maintained in the future and is subject to changes in legislation.
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