Unsecured Pension
Rules relating to unsecured pensions and alternatively secured
pensions were abolished as of April 2011. Unsecured and
Alternatively Secured pensions have now been replaced by new
pension drawdown options.
There are two main types of pension drawdown now available:
- Capped drawdown
- Flexible drawdown
To find out more about these two options visit the pension drawdown page.
If you already had an unsecured or alternatively secured pension plan by April 2011 you will need to use you remaining pension fund to either buy an annuity or you will need to transfer into a capped or flexible drawdown scheme. When you will need to do this will depend on your own individual circumstances.
In addition to the phasing out of unsecured and alternatively secured pensions, the requirement to purchase an annuity by age 75 has also been lifted. These changes mean greater flexibility in how and when you retire.
Capped and flexible drawdown still offer you some of the same options as unsecured and alternatively secured pensions, allowing you to take an income while you pension fund remains invested. You should also still be able take a lump sum of up to 25% on retirement.
For impartial advice on your retirement options contact a member of the independent pension advice team from one of our partner firms for a free initial no obligation consultation.
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