Retirement benefits

Benefits on Retirement

As a member of PensionBuilderPlus your normal retirement age is 65, but you could take your pension earlier or later depending on your circumstances.  The minimum age you can take your retirement benefits is 55.

When you retire you will be offered a range of choices. You will need to make some decisions as the pension fund you have built up with Lafarge will need to be converted to provide you with an income when you retire.  You will need to buy a retirement income product that provides you with that income. And to make the most of the money in your pension fund, you should shop around.  The options will have different features, different rates of payment, different charges and different tax implications. 

Your main options are summarised below but click>here for a guide prepared by the Government sponsored Money Advice Service giving more details.

The Tax Free Cash Option

You can usually take 25% of your defined contribution pension pot tax free and then choose from a range of options listed below.  If you take 25% tax free, you must make a decision on the remaining 75% within 6 months - you can’t then leave it untouched.

Retirement Income Options

Guaranteed income (annuity or pension)

 You use your pot to buy an insurance policy that guarantees you an income for the rest of your life - no matter how long you live.

Adjustable Income

 Your pot is invested to give you a regular income. You decide how much to take out and when, and how long you want it to last.

Take cash in chunks

 You can take smaller sums of money from your pot until you run out.

Take your whole pot in one go

 You can cash in your entire pot. One quarter is tax free, the rest is taxable

Getting help and advice

We recognise that this is a big decision, and we strongly recommend you seek financial advice if you feel you need help.  This need not involve a fee – many advisers will offer a commission-only service, with no up-front fee.  Hargreaves Lansdown in particular have been selected by the Lafarge Trustee to provide you with this service at no cost to yourself.  Please Click>Hargreaves Lansdown to visit their site.

Alternatively the Government provides a free advice service called “Pensions wise” and their website address is www.pensonwise.gov.uk  This service can be accessed either by phone (0300 0330 1001), email (contact@pensionwise.gov.uk) or face to face via selected branches of the Citizens Advice services.

Downloads

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File Size Link
pdfThe Money Advice Service - Your Pension Its Time to Choose April 2015 1.36MB Download