Options with a Money Purchase Scheme

If you are in an occupational money purchase scheme, you can choose to take part of your pension as a tax-free lump sum and use the rest to buy an annuity, which is designed to provide you with a regular income for life. The maximum amount you can take as a cash sum is 25% of your pension fund.

Although the majority of people in this type of scheme use the remainder of their fund to purchase an annuity, you also have an option to transfer to an unsecured pension (also known as income drawdown) up until the age of 75, and then an alternatively secured pension (ASP) after this time.

To learn more about these three options, choose a method from the menu below.