Flexible Retirement Options
Retirement benefits can commence at any time between the ages of 50 (55 if benefits commence after 5th April 2010) and 75 and you do not have to cease working to draw benefits.
It is possible to start benefits earlier than age 50 if you are in serious ill health.
Westerby Trustees Services provides a full range of retirement options, detailed below:
- Pension Commencement Lump Sum - up to 25% of the value of your fund can be taken as a tax free pension commencement lump sum, however this may vary depending on circumstances and is subject to the Lifetime Allowance:
Tax year Lifetime Allowance
2007/08 £1.60 million
2008/09 £1.65 million
2009/10 £1.75 million
2010/11 £1.80 million
- Lifetime Annuity - you may purchase a pension with the value of your fund from an insurance company, which is guaranteed to be payable for life. The benefits secured are determined at time of purchase and are based on annuity rates.
- Unsecured Pension (USP) - you can draw a pension directly from your investments until the age of 75, rather than purchase a lifetime annuity. There is no minimum pension requirement, however there is a maximum level you can draw each year.
- Alternatively Secured Pension (ASP) - this option allows you to continue to draw a pension after age 75. There are minimum and maximum levels you can draw. The rules on ASP are complex and subject to frequent changes. Please consult your financial adviser if you are considering this option.
- Phased Retirement - you can draw benefits from part of your fund whilst leaving the remainder invested until such time as you wish to draw a further lump sum or increase your income. This option allows you to phase your retirement from your initial selected retirement date until age 75.
Registered Address: 1 & 2 St Matthews Business Centre, Gower Street, Leicester LE1 3LJ
Registered in England & Wales No. 02562924
Westerby Trustee Services Ltd is Authorised and Regulated by the Financial Services Authority Reg. No. 463533
