Tax-free lump sum

Under current tax rules, when you retire you can take up to 25% of the value of your Retirement Savings account as a tax-free lump sum.

Retirement age

The earliest you can take the money out of your account is 55. The Government wants to raise this ‘minimum retirement age’ to 57, from 2028. This will probably affect anyone under the age of 40 but we are still waiting for the details to be agreed.

Using your retirement savings

From April 2015, the rules on how you can use your Retirement Savings account changed, giving you a lot more flexibility and choice. For example, you can take all of the money in your account as cash, or take an income from your account while the rest remains invested, or you can buy an annuity. You can find out more on this website: www.pensionwise.gov.uk

If you die – life ​assurance cover

As a member of the AHBRSP, you are eligible for life assurance cover of four times your Retirement Savings Pay, rising to five times your pay after five years’ membership. (This benefit ceases at age 75.)

Your loved ones would also receive the money in your  Retirement Savings account. It’s important to update a Nomination of Beneficiary Form so that we know who, in the event of your death, you would like to receive any lump sum payable and the return of your account.

Although we will try to follow your wishes, it’s important to understand that the form is not legally binding. Doing it this way means that your loved ones won’t have to pay inheritance tax on the money.

If you leave

If you leave the company, or opt out of the AHBRSP, you can keep your ​account invested in the Plan or transfer your savings to another qualifying pension scheme.

The company’s contributions and any investment growth will be yours to keep.

We have created a guide that explains your options on leaving.