Unsecured Pension (Income Withdrawal)

If you are reaching retirement, you are probably looking forward to turning your dreams into a reality with the income from your pension. There are several options available ranging from the simplest-a conventional annuity which will pay a fixed income for the remainder for your life or investment linked annuities where their income can go up and down depending on how well the underlying investments perform.

As an alternative to buying an annuity you could consider income withdrawal. You can still take tax free cash from your pension plan but instead of buying an annuity you can take an income from your fund-within certain limits-and the balance of your fund will remain invested in a pension plan.

Once you reach age 75 there are some more investment decisions to take although in most cases the fund is converted to an annuity by this time.

This is a more complex option than taking an annuity from the outset. You should review the income level you are taking and how your funds are performing every year with your Financial planning Manager.

• Important Information

  What you get back at retirement from a personal pension will depend on the investment performance of the underlying assets, and the annuity rates applicable at the time that you take your pension benefits. The value of investments can fall as well as rise. Returns are not guaranteed and you may not get back what you originally invested. The favourable tax treatment of pensions may change at any time in the future. The value of tax relief will depend upon your personal financial circumstances. Annuity rates may fall or rise. If they fall, the pension you buy at later date may be smaller. You must take a tax-free lump sum before your 75th birthday or will lose this option. Any income you withdraw will be taxed as earned income. You can't access your money in your pension until reach the age of 50 going up to 55 in 2010. Your Financial planning Manager will inform you about the product's aims, its objectives and the risks involved. The Key Features document will also detail this information for your reference.

With Barclays Financial planning you get:

• A SIPP exclusively tailored for Barclays

For more information call 0800 587 2024 to book an appointment or request a call back.