Retirement focus

The Trustees have created three Retirement focus options for you:

    1. Retirement focus: default (income drawdown)

    2. Retirement focus: income for life (annuity)

    3. Retirement focus: take the pot as cash

If you are in the Default strategy and do not make a choice about how to invest your savings in the five years before your target retirement age, your savings will move gradually and automatically into the Retirement focus fund for income drawdown.

The three options are explained in more detail below:

At your target retirement age, your FuturePlanner pot will be ready to be transferred to a drawdown provider of your choice. The FuturePlanner Trustees have an arrangement with a workplace Master Trust pension scheme called Smart Pension, where you will be able to take your 25% tax-free cash sum* and keep everything else invested until you need it.

At retirement, your money will be invested in a range of funds that suit an income drawdown strategy, and could be moved across to the default investment in Smart Pension if you wish to use that arrangement:

- 50% in the Cautious Growth Fund
- 25% in the Annuity Focus Fund
- 15% in the Cash Fund
- 10% in the Stable Growth Fund

The annual charge for the income drawdown option is 0.292%

*Subject to a maximum of £268,275 unless you have a form of Lifetime Allowance protection

If you plan to buy an annuity with your money so you can have a guaranteed income for life, you can choose the ‘income for life’ option. This will move your money so that at retirement it is invested like this:

- 25% in the Cash Fund
- 75% in the Annuity Focus Fund

The annual charge for the income for life option is 0.307%

If you want to take your entire pension pot as one cash lump sum, you can choose the cash option. This will move your money so that at retirement it is invested like this:

- 100% in the Cash Fund

You will be able to take 25% tax free* but the remainder may be taxed.

The annual charge for the cash option is 0.350%

*Subject to a maximum of £268,275 unless you have a form of Lifetime Allowance protection