Retirement Planning - Use money purchase benefits to buy annuity (UK)

Default Crystallisation and Drawdown Income Schedule for Money Purchases

Unless set otherwise, money purchase benefits will be retained within the money purchase wrapper for as long as possible, with benefits being crystallised on an 'as needed' basis. The 'as needed' setting will allow the software to take a series of Uncrystallised Funds Pension Lump Sum (UFPLS) withdrawals, as and when needed and, by default, this instruction will take effect from the individual's Retirement event; of course, 25% (by default) of any withdrawals will be paid tax-free, with the balance being treated as taxable income. As such, the software's default setting, with regard to money purchase benefits, does not entail moving benefits into pension drawdown. 

Schedule the Future Annuitisation of a Money Purchase account

An alternative retirement planning scenario would involve using money purchase benefits for the purchase of an annuity. This can be scheduled either using an event, or the individual's age, via the Annuitization panel, available under each money purchase pension. When scheduling the purchase of an annuity, be sure to toggle the panel’s Annuitisation Applies switch.

Complete the fields in the Annuity panel as appropriate for the annuity which will be purchased. See below for an example:



Once completed, click Save.

For more information on how annuity rates are calculated in Voyant click here.