Changes to your clients’ pension plans
Collective Retirement Account
Following the introduction of the new pension freedoms on 6 April 2015, we have extended the range of flexible retirement income solutions available to your clients through our Collective Retirement Account (CRA). It now provides 10 different ways in which clients can access their pension savings to provide income solutions that help meet their future, changing needs, and wider choice as to how they can pass any remaining funds to specified beneficiaries when they die.
View our ‘Income choices for all seasons’ brochure that details all of the withdrawal options now available within the Collective Retirement Account.
Many older style pension arrangements which currently hold clients’ pension savings do not include these options, potentially limiting the choices available. The Collective Retirement Account is also able to accept transfers of funds from other registered pension schemes to enable your clients, where appropriate, to take advantage of the new freedoms immediately as far as potential legacy planning is concerned, and for their longer-term retirement income planning.
>View a summary of the retirement options that are available now under the CRA
Importantly, knowing that the CRA provides these options gives you certainty when making recommendations for potential transfer business and new funding in the current tax year and beyond.
Our legacy pension products will provide some options for retirement income from 6 April but for those clients who are still accumulating their pension savings, they may consider transferring to a more flexible product such as the Collective Retirement Account.
Summary of income and death benefit options
The table below shows the income and death benefit options for clients invested in our legacy products. Copies of letters we sent to those clients prior to April 2015 to highlight the options that would be available to them from April 2015 can be accessed using the links below. If you need a reminder of our product prefixes, you can download our Old Mutual Wealth product list.
1 - Option to move to drawdown currently available and facilitated by immediate transfer of residual fund, after tax-free cash payment made in full, as a drawdown transfer to Collective Retirement Account or nominated external registered pension scheme. This will be done as flexi-access drawdown transfer.
2 - Facilities are available by transfer of fund after death to Collective Retirement Account or nominated external registered pension scheme provider (as a transfer of beneficiary flexi-access drawdown).
3 - Available by full transfer of fund to Collective Retirement Account or external registered pension scheme.
4 - Can be written under individual trust - available from Old Mutual Wealth for BB6 policies and from external trust providers for other contracts.
Below are copies of the letters we issued to your clients.
Collective Retirement Account
Legacy pension product variations (based on product types)
- Legacy Letter - EP1-6, EPP, DP, SAP, SRP, ECO, EPB, EPS, ERA
- Legacy Letter - FS1-4, ACA and all Personal Pension Contracts
- Legacy Letter - BB6
- Legacy Letter - SPP/IPP/IPB/FRA/FRS/FRM
- Legacy Letter - DA 1/2/3/6
- Legacy Letter - DAA