Take your tax-free cash lump sum, an income or ad hoc payments whenever you want.
You can plan your withdrawals and future income to reduce your liability to tax.
Choose investment funds to suit your risk appetite.
Use your fund to buy an annuity at any time in the future, for instance, if you qualify for an enhanced annuityoffering higher income.
2. Investment growth
Your fund remains invested with potential future investment growth which is free from income tax and capital gains tax.
3. Valuable death benefits for your loved ones
Your fund passes to your beneficiaries tax free if you die before age 75 or taxable if you die after 75, and then to future generations.
You remain in control of your fund and its investments.
Your fund is invested and subject to uncertain investment returns.
This is a high risk option as your income is not secure.
The value of your fund can fall and at worst, your income can run out.
High income withdrawals or poor investment returns could eliminate your fund.
2. If an annuity might now be of interest
Annuity rates change and there is no guarantee that your future income from an annuity will be as high as that offered by an annuity purchased today.
Initial and ongoing charges for setting up and managing the fund apply and these vary a great deal.
4. State benefits
Before taking cash or income from your fund, you need to check if this could affect your entitlement to any meanstested state benefits.