Here’s a simple summary of your options when it comes to taking your pension.

 

Some of these are available under the Plan rules. Each option has different features, different rates of payment, different charges and different tax implications.

A B C D
A flexible
retirement income
(“flexi-access”)
A regular
income for life
A single
lump sum
A number of
lump sums
What’s the
option? 		You can allocate some or all of your money for flexi-access drawdown. You can take a tax-free cash sum, generally of up to 25%, and invest the rest in a ‘flexi-access’ drawdown arrangement. You can then make future withdrawals when you wish. You can also use some of this money to buy a regular income, either immediately or later, if you want. You can take a tax-free cash sum, generally of up to 25% of your pension account, and use the balance to buy a regular income for life (also known as an annuity) to provide an income for life. You can take your entire pension account as a single cash sum. You can leave your account invested and take money out in multiple lump sums.
How does the tax
work? 		Future withdrawals will be taxed at your marginal income tax rate. The income from the annuity is taxed at your marginal income tax rate. Generally, 25% of the lump sum is tax-free, the remainder is taxed at your marginal rate. Generally, 25% of each lump sum will be tax free and the rest taxed at your marginal income tax rate.
How is this
provided? 		You will need to transfer the full value of your pension account to an external provider to take up this option. An annuity can be bought directly from the Citi pension plan or you can buy this directly with an annuity provider on the open market. You can do this directly from the Citi pension plan. You will need to transfer the full value of your pension account to an external provider to take up this option.
Can this be
provided within
the Citi pension
plan? 		No Yes No No
Can this be provided within the Legal & General Mastertrust Pension Access Scheme? Yes Partially* No Yes

You may also be able to ‘mix and match’ some of these options. If you would like to understand this further, please contact the administrator using the details found on MyCitiPension. This may be complicated to achieve and you may wish to speak to your own independent adviser to help you with this.

What do you want to do next?

If you already know which option is for you, find out how to make it happen and what you need to do when it comes to your Citi pension savings.

What do you want to do in retirement? Your plans will help you work out which option will work best for you.

Find out more

Go to the Government’s Pension Wise service and start learning more about your options. You can also arrange to speak to someone and get free, impartial guidance on your next steps.