Transfer to an external annuity or drawdown provider
You are able to transfer your benefits at any time up to when you retire. This option is also likely to provide you with a higher tax free cash lump sum than available from the ZF UK Pension Plan.
From 6 April 2015 the rules on how your benefits can be paid if you transfer out of the Plan have changed. These rule changes have enabled greater flexibility on how you can choose to receive your retirement savings. The options available from April 2015 are broadly:
- Receive all of your retirement savings as a lump sum. The first 25% would be paid tax free and the remainder taxed at your marginal rate of income tax.
- Receive 25% of your retirement savings as a lump sum, with the balance remaining invested in accordance with your wishes and being drawn in such quantities as you choose. Subsequent payments would be taxed at your marginal rate.
- Receive 25% of your retirement savings tax free and use the balance to purchase a guaranteed monthly pension income (an annuity). This annuity can be tailored to your specific circumstances and could be enhanced if you smoke or suffer from certain health conditions.
If you are over 55 and considering retirement you should contact Barnett Waddingham to request a retirement quotation.
In order to transfer out of the Plan you will be required to obtain authorised financial advice.