The Cash Retirement Account

What is our Cash Retirement Account?

Our Cash Retirement Account is a Self Invested Personal Pension (SIPP) that provides retirement benefits for a fixed term at a frequency and level chosen by you at outset.

The fixed term may be from 1 to 5 years (in whole months) and offers you a personalised mix of benefits that you select at outset and shape to suit your personal circumstances. In addition, if chosen by you, it enables you to build up further pension savings by making single or regular additional contributions within HMRC limits, that can be used to provide additional pension benefits in the future. 

The benefits can consist of a tax free cash lump sum, one or more lump sum payments, regular income payments, an amount invested in an instant access account that is available for withdrawal at any time upon request by you and a Protected Maturity Amount that is known at outset. 

If a Protected Maturity Amount is payable, at the end of the term you can choose to use this to buy another Cash Retirement Account, buy a lifetime annuity, transfer to another pension arrangement or take your remaining pension fund as a lump sum.

How does it work?

You set out the shape and frequency of the benefit payments you require and we invest your fund in one or more cash deposit accounts to provide the level of benefits requested.

Because our Cash Retirement Account only uses cash deposit accounts, you know at outset exactly what benefits will be provided. The investments are made with one or more of the financial institutions on our panel, which is reviewed regularly and consists of banks and National Savings and Investments (NS&I).

The mixture of accounts will be selected so that the interest earned is maximised, they mature in time to provide the future benefits you have asked for and the amounts invested, including interest to be earned, do not exceed the current FSCS limit with any single institution.

All institutions within our panel are authorised to do business in the UK by the Financial Conduct Authority and are covered by the Financial Services Compensation Scheme (FSCS). The FSCS protects your deposits up to £85,000 per person, per authorised firm. NS&I is not part of the FSCS but is an Executive Agency of the Chancellor of the Exchequer and any money invested with NS&I will be 100% secure as they are backed by HM Treasury, with no overall limit on how much is guaranteed.

What flexibility does it offer?

We believe our account is one of the most flexible arrangements available:

  • Account Term: 12 months to 60 months
  • Minimum Transfer Amount: £18,000 after tax free cash
  • Age limits: 55 and over (minimum age can be lower in certain circumstances), no minimum age if immediate pension benefits are not required, no maximum age
  • Tax Free Cash: Up to 25% payable at outset or taken as part of a series of lump sums where the first 25% is tax free
  • Instant Access Account: any amount may be specified, payable at outset or at a later date on request by you
  • Income frequency: may be paid monthly, quarterly, half yearly or annually, in advance or in arrears
  • Income Escalation: Level or increasing at any percentage chosen by you, up to 10% per annum
  • Income flexibility: may be specified at outset to increase, decrease or stop on any anniversary
  • Regular Premiums: may be paid into the account subject to the minimum level and individual eligibility
  • Single Premiums : may be paid into the account subject to the minimum level and individual eligibility

This summary is intended to highlight some distinctive features of the Cash Retirement Account. It is not intended to be a comprehensive description of the product and should be read in conjunction with the Customer Guide and Key Features Document of the Cash Retirement Account.