Do you know what your options are at age 55? You've got plenty of choice, find out what might work best for you.

It’s always nice to have options, and with your Citi pension you’ve got plenty of them.

Your Normal Retirement Age under the Citi Plan is 60, but you don't need to wait until then to take your money, it can be at any time from age 55 (57 from April 2028).

Once you reach age 55, you have two options within the Citi Plan:

  1. You can take your entire pension savings as a single cash sum. 25% of this amount is tax-free, and the remainder will be taxed at your normal income tax rate.
  2. You could also take a tax-free cash sum of up to 25% of your pension account and then use the balance to buy an annuity to provide an income for life. Again, the income is taxed at your normal income tax rate.

You also have the option to transfer the value of your pension account to an external provider.
This can give you greater flexibility and will enable you to:

  1. Take a tax-free cash sum of up to 25% and invest the rest in a “flexi-access” drawdown arrangement. This means that you can make later future withdrawals when you wish. These will be taxed at your normal income tax rate. If you wish, you can also use some of this money to buy an annuity (income for life), either immediately or at a later date.
  2. Leave your account invested and take money out as one or more lump sums, where 25% of each lump sum will be tax free and the rest taxed at your marginal income tax rate. This is the option that is often described as treating your pension fund like a bank account. The technical name for this, which you may see used, is an Uncrystallised Funds Pension Lump Sum (UFPLS).

Remember: Sometimes, and especially if you take your pension benefits while you’re still working, taking a lump sum or additional income from your pension can push you into a higher tax bracket. So it's important to consider your options carefully, for example how much income do you need and how much are you already receiving from sources other than your pension, if you think this might apply to you.

If you choose to take all of your money, you can still decide to build up your pot again, whilst working at Citi. Be aware though that the Government has set up a limit for people that do this, of £10,000, which is known as the Money Purchase Annual Allowance (MPAA). The annual allowance applies across all of the schemes you belong to, it’s not a ‘per scheme’ limit and includes all of the contributions that you or Citi pay.

You can also find more information about your investment options as a Citi Plan member, including your three ‘lifestyle’ funds here.

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.