Retirement Account

An award winning* personal pension that helps you manage your pension savings, plan for your retirement, and choose how to take your pension when the time is right – all in one place.

Our retirement partners, Scottish Widows, have more than 200 years' experience, and are part of the same group as us. Together we bring you an award-winning* personal pension. If you have one or more pensions with a value of £10,000 or more, you can transfer them into our Retirement Account. Once your account is open you can make additional contributions which will normally benefit from tax relief.
*Source: Defaqto Annual Product Ratings - April 2023

We take the hassle out of making investment choices with our Governed Investment Strategies (GIS). Each strategy is a blend of funds known as Pension Portfolios. We ask you to choose your approach to risk and how and when you want to take your benefits when you retire and use this to place you into the appropriate GIS.

Let's take a look at those in more detail.

Risk levels in more detail and how to make a choice expandable section

Appetite to risk	How your pension pot could perform
Appetite to risk Cautious You’re cautious with your investments and don’t feel comfortable taking much risk with your money.	How your pension pot could perform You can expect your pension pot to have some ups and downs in value. While there’s potential for some growth, there’s also potential for some losses.
Appetite to risk Balanced You’re a balanced investor and feel comfortable taking some risk with your money for, potentially, more reward.	How your pension pot could perform You can expect your pension pot to go up and down in value. While there’s potential for growth, there’s also the potential for losses.
Appetite to risk Adventurous You’re an adventurous investor and feel comfortable taking high risk with your money for, potentially, high rewards.	How your pension pot could perform You can expect your pension pot to have a lot of sharp ups and downs in value. While there’s potential for high growth, there’s also potential for significant losses.

If you're unsure we’d recommend that you speak to a financial adviser, who will normally charge you for this advice.

Take a regular income for life expandable section

This type of income is called an annuity.

How does it work?
You can normally take up to 25% of your pension pot as a tax-free cash lump sum then use the rest to buy a regular guaranteed taxable income for life.

There are different types of annuity which can affect how much income you would get.
For example - You could choose to buy an increasing income, which would mean a lower starting income. You could also choose to provide a continuing income for a loved one after you die, which would reduce the level of income you’d receive.
Access it flexibly taking taxable income withdrawals as and when you like expandable section

Known as flexible access drawdown or retirement income.

How does it work?

You can normally take up to 25% of your pension pot as a tax-free cash lump sum, and leave the rest invested. You can then take taxable withdrawals as and when you like, either as regular income or one-off lump sums.

The level of income you take and any investment growth will be key factors as to how long your pension pot will last and you may run out of money in retirement without careful planning.
Take some or all as cash expandable section

Known as encashment.

How does it work?

You either take part or all of the value of your pension as a cash lump sum. The first 25% of each amount you take is tax-free and the rest is taxed at your highest tax rate by adding it to the rest of your income for that year. Please bear in mind this could take you into a higher tax bracket.

Be mindful - without very careful planning you could run out of money in your retirement.

Saving for your retirement

What are the options?

Charges

Let's see an example of how that could look

Why choose us?

Frequently asked questions

How can I manage my Retirement Account? expandable section

When your account is set up, you'll have access to an online portal from Scottish Widows. You'll be able to check how your pension is performing, make changes to your account and update your details if you need.

Remember, you can easily check how much your total pensions are worth through the Lloyds Bank Mobile Banking app - anytime, anywhere.
What happens to my Retirement Account when I die? expandable section

You can pass on the value of your pension to a loved one when you die, either as income or a lump sum. If you die before 75, your benefits are usually tax-free. If you die on or after 75 years of age, your benefits will be taxable. Keep us up to date with who you want to leave your pension to when you die. This person is known as a beneficiary.
I’d rather not make a high-risk investment. Is the Retirement Account suitable for me? expandable section

The Retirement Account offers three levels of approach to risk, including a ‘Cautious’ approach where the potential for both losses and growth is less than other options. Alternatively, the ‘Balanced’ and ‘Adventurous’ investments provide increasing potential for pension growth but also losses.
What happens to my Retirement Account if I’m in ill health? expandable section

If you’re in ill health, you may be able to take your pension benefits before you’re 55 years old (rising to 57 in 2028). If you’re in serious ill health, which means you’ve been diagnosed with less than 12 months to live, you might be able to take your entire pension pot as a cash lump sum. This is tax-free up to the age of 75.
What if I want to take money from my pension soon after I’ve transferred into a Retirement Account? expandable section

Deciding to take money out of your pension soon after transferring to us is an important decision. We’ll check with you to see if you’ve had financial advice, or free guidance from Pension Wise. If you haven’t, we’ll double-check to see if you’d like to do this before we go ahead with your transfer application.