Adviser > Individual > Income Release
Income Release
Income Release lets your clients access their benefits at a time and in a way most suited to their needs - whether as a lump sum, income, or a combination of both.
We recognise that no two clients are the same. That's why our Pension Portfolio comes with Income Release, our fully integrated income drawdown facility, allowing your clients to tailor pension benefits around their changing circumstances.
At a glance
- Available to clients aged 50 and above (55 from 6 April 2010) with at least £20,000 in the Core Investments.
- Allows tax-free lump sum(s) and income to be taken directly from the plan.
- Full range of investment options available, excluding with profits fund.
- Clients can continue making payments into the plan after taking benefits.
- Income management facility available: Income Tap.
- Protected Rights funds can be used to provide Income Release, phased if required.
- Clients can continue withdrawing an income after age 75.
As we do not specify a minimum designation amount, this offers clients the ultimate flexibility. They will be able to withdraw even very small amounts from their plan.
Benefits can also be paid on a phased basis, including any Protected Rights funds your clients may have built up.
Income Tap
Income Tap is our innovative income management facility designed to help protect income payments for a specified period.
Where a client is taking income from their plan it is common to secure an agreed number of income payments by investing them in a low risk fund. This allows the remainder of the portfolio to be invested for longer-term income and growth. Charges may apply for exercising this facility.
In order to facilitate this, we have created the Income Tap Account. This invests in the Scottish Life Deposit Fund.
Find out more
You will find full details of how Income Release works, along with all the additional options available, in the Pension Portfolio Financial Adviser Guide.
For professional advisers only