If you have not elected to purchase an annuity by your 75th birthday, your entire fund (including any amounts not previously vested) will automatically be converted to a new form of income drawdown known as Alternatively Secured Pension (ASP).
You can still buy an annuity but you will no longer be required to do so by age 75.
The maximum ASP income limit will be 70% of the Government Actuary’s Department (GAD) rate. The GAD rate is broadly equivalent to the level of annuity a 75 year old could have bought with their pension fund. There is no requirement to take a minimum income.
The annual income limit will be reviewed every year rather based on the current fund value and the relevant GAD rate as at your 75th birthday.
Any entitlement to tax free pension commencement lump sum will be lost. |
