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Our retirement solution

Collective Retirement Account

The Collective Retirement Account (CRA) is held within our Defaqto Gold-Star-Rated Old Mutual Wealth Personal Pension Scheme. It is a truly flexible plan for life, allowing your clients to continue accumulating retirement savings at the same time as taking retirement income. Unlike many pension arrangements, the CRA does not require clients to crystallise at age 75.

The CRA delivers all of the options below within the same account and at no additional cost. This gives your clients the methods of withdrawal you need to help ensure, that when they wish to access their pension savings, on or after their 55th birthday they:

  • don’t pay too much in tax
  • can gain access to their money when they need it, and
  • have the option of leaving a tax-efficient legacy if that’s part of their plan.

 

The value of advice


This short client-facing case study video shows how Mike’s adviser uses our Collective Retirement Account (CRA) to improve Mike’s retirement income, clearly demonstrating the value of her advice.


What are the benefits?

These facilities may be suitable for clients who have no immediate need to access large amounts of their tax-free cash entitlement, but who do need a level of regular income to be generated from their pension savings. They provide the ability to:

  • take tax-free cash on a regular basis to provide a source of retirement income on which the client will suffer no income tax liability
  • minimise encashment by delivering regular income on an ‘encash-as-you-go basis’. This ensures clients will keep the maximum level of pension savings fully invested, enabling them to benefit from future growth potential – not only increasing the potential for future personal income, but also leaving as much as possible available for legacy planning.

The tax treatment and efficiency of these options will depend on the individual circumstances of each customer. Tax rules and their application may change in the future.

 

 

Our withdrawal options

All of these options are provided at no additional cost:

  • Flexi-access drawdown
  • Capped drawdown (where drawdown started before 6 April 2015)
  • Small pots payments
  • Taxable lump sums from uncrystallised funds via flexi access drawdown
  • Full encashment
  • Purchase of a lifetime annuity through use of the open market option
  • Beneficiaries/nominee/successor flexi-access drawdown
  • A choice of two automated regular income withdrawal facilities whereby income can be taken:

    - initially, only from the client’s tax-free cash, thereby building a taxable drawdown fund for future use with each encashment, or

    - by encashment of uncrystallised funds to generate an income payment, of which 25% is tax-free and the remainder is subject to income tax at the client’s marginal rate.

There are no charges for withdrawing income.

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