Capital pension scheme

With a capital pension scheme, you get your entire pension savings paid out as a lump sum, and you can spend the money whenever and however you want.

Since 2013, contributions to capital pension schemes have not been tax deductible.

With a capital pension scheme, you can go on a world tour or buy an allotment, as you can have your entire amount of savings paid out as a lump sum. You can also choose to have it paid out in smaller portions.

Advantages of a capital pension scheme

  • You can have your savings paid out from the date you reach your pension payout age.
  • It is up to you how and when you want to spend the money.
  • It is up to you whether you want to have your savings paid out as a lump sum or in portions.
  • The return on your capital pension scheme is currently taxed at just 15.3% per year.
  • Savings balance protection guarantees that your beneficiaries receive the value of your savings if you die before retirement.

Facts about capital pension scheme

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