Retirement age & tax free lump sums

Retirement Age

The minimum age for taking retirement benefits is to move from 50 to 55 by 2010 - although individuals with existing entitlements to lower retirement ages will retain the right to retire at that age.

Tax Free Lump Sums

A tax free lump sum can be taken of the lower of £375,000 (i.e. ¼ of the Lifetime Allowance) or 25% of the fund.

If pre A-day entitlements are superior, these can be protected for drawing post A-day.

Annuities

Annuity compulsion at age 75 will be dropped, although death benefits post age 75 will be restrictive.