Drawing pension benefits
Members don’t need to retire in order to take benefits, therefore the term crystalisation is used.
The earliest a member can access any benefits is 55, which is due to rise to 57 from 2028.
Due to the Taxation of Pensions Act 2014, since 6th April 2015 members can take as much or as little once they have reached minimum pension age. The options available:
- Purchase a scheme pension
- Purchase a lifetime annuity
- Enter flexi-access drawdown
- Use some or all of the fund to provide a UFPLS
It most cases 25% of the fund is paid tax free, with the balanced taxed under PAYE