Taking a lump sum from a plan already in Drawdown

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1 Taking a lump sum from a plan already in Drawdown (only use this form if you are requesting a withdrawal of less than 50,000) What this form is for 0817 Only use this form if you have a Self Invested Personal Pension that is already in drawdown and you want to take a lump sum of less than 50,000. This will not affect any existing regular payment we are making to you. Please contact us if you would like a quote showing the impact of taking this lump sum from your plan. This form is not suitable if your plan is invested via a wrap platform. Please contact your adviser if you wish to make a withdrawal. To help us process your request efficiently, please ensure you provide all the information we require. If we don t receive accurate information, we may have to contact you which will cause a delay in paying out your money. Plan Number D Taking pensions guidance Have you used Pension Wise, whether online, face-to-face or by phone, or taken financial advice concerning this decision? Pension Wise Financial advice Neither We recommend that you seek appropriate guidance or advice to understand your options at retirement. You can access Pension Wise, the Government s free impartial guidance service, online at by phone ( ) or face-to-face. Have you shopped around? No Move on to the next section. Different providers offer different options for your retirement. Shopping around before making a decision could result in you being financially better off. Make sure you understand how charges compare. August 2017 Page 01 of 08

2 Important things you should think about Are you aware of the tax implications? No Tax rules are complicated so you may find the information below useful. Please tick the box at the end of the section to confirm you understand the tax implications. How much tax will I pay? We will use up any remaining tax-free lump sum first. Any amount above this will be subject to income tax at your marginal rate. This rate depends on your total income in a tax year, so please be aware that taking this withdrawal doesn t take you into the next tax band. If you prefer you can spread any remaining tax-free cash over future income instead call us for details. You may be able to avoid paying as much tax by splitting your cash withdrawals over two or more tax years, if you are concerned about your tax exposure, we would recommend you seek guidance or advice before proceeding. How much tax will be deducted now and how can I reclaim any overpayment? When calculating your payment, we have to follow strict HMRC guidance about how much tax to take off. This means we normally have to deduct more tax upfront, which you may then need to reclaim later using a form you can download from the HMRC website at In future you may be more restricted in how much you, an employer, or a third party can pay into this or any other pension. Different rules apply to flexible drawdown and capped drawdown. The section below will give you further details of these rules. Please be aware that in both situations your own annual allowance may be different depending on your earnings. If you have any concerns about the annual allowance please contact us as this form may not be suitable for you. Flexible Drawdown When you take more than the tax free cash, the maximum you, an employer or any third party can pay into any of your defined contribution pensions without attracting a tax charge reduces from 40,000 a year to 4,000 a year. This can be a problem if you are still earning and: Have other savings you want to pay into your pension for a tax uplift Or You intend to have significant contributions paid into any of your pension. Check this limit isn t going to be a problem before going ahead. Once the limit reduces you can t change your mind later. Please note that the above restrictions only apply to pensions that are classed as Defined Contribution Pensions. Capped Drawdown When you take more than the tax free cash but remain in capped drawdown, the maximum you, an employer or any third party can pay into any of your pensions without attracting a tax charge is not affected. It will remain at 40,000 a year. Please note that these limits apply to all types of pensions. I m aware of the tax implications of taking cash from my pension and am happy to proceed on this basis. Page 02 of 08 August 2017

3 Do you have any dependants? No Move on to the next question Any money that you take now and that you don t spend forms part of your estate if you die and could be liable for inheritance tax if your estate is large enough. Bear in mind, money left in your pension is likely to pass to your spouse, partner or family inheritance tax free. Do you receive means-tested benefits? No Move on to the next question Money in your pension doesn t normally affect your entitlement to means-tested state benefits. However, any money you receive from your pension may impact these benefits. If you (or your partner) are receiving means tested state benefits now or are likely to qualify for these in the future, you may want to take time to look into this. To help understand this you can: talk to the Department for Work and Pensions or the Citizens Advice Bureau you could also speak to a financial adviser of your choice or use to find an adviser locally. I m aware of the risks and am happy to proceed on this basis. Are you in debt? No Move on to the next question Please be aware that if you have debts then those you owe money to may have a call on any money taken from pension savings if you don t meet your repayments. Also, if you are subject to a bankruptcy or court order, any money taken from your pension could be used by creditors to pay off outstanding debts and you should consider if this will impact you. If you re intending to use your withdrawal to repay debt, make sure you understand all the options available to you to manage your debts. There may be a better option for you than taking money from your pension. You can contact the Money Advice Service for help. I m aware of the risks and am happy to proceed on this basis. Are you in serious ill health? (This means you have a life expectancy of less than 12 months) No Move on to the next question You may be able to receive part of your pension pot without paying any tax. If this is the case then give us a call on and we can help you with this option. Do you understand that taking cash now means your fund may run out sooner or altogether? No Move on to the next section The more cash you take out now, the less you may have for the future. If this is your only pension, you could be left with no source of income for your retirement other than the State Pension if you take too much now. Remember money in your pension grows tax-efficiently and you can withdraw money any time you like. It can also pass tax-free to your spouse or family if you die before age 75. So consider just taking what you need. August 2017 Page 03 of 08

4 Other important things you should think about Your options at retirement Your options at retirement and the tax you pay will always depend on your personal circumstances and this should not be regarded as financial advice. If you require financial or other professional advice you should consult a suitably-qualified professional. Of course, laws and tax rules may change in the future so this information is based on our current understanding in March Anything remaining of your pension will remain invested This gives the potential for future investment growth, but this also means the value of your pension could fall and you may get back less than you paid in. You should consider if this product and the investment selection you have made continue to be appropriate for your circumstances. There are other options available to you that you may wish to consider and that may be better suited to you. You can find out more at Alternatively, you should consider obtaining financial advice or seeking guidance from PensionWise or the Money Advice Service. Volatile investment markets Taking withdrawals or changing funds when investment markets are falling may result in you losing money. Investment losses will affect the length of time your money will last for. If market volatility is very extreme, your money may run out altogether. Be aware of investment scams People taking their pension money can be targeted by unscrupulous individuals promising high returns without explaining the risks involved. Be careful if you invest money taken from your pension savings and never feel rushed into making a decision. For more information, visit the Money Advice Service website at Understand how inflation may affect you There is a risk that the income you are taking may not keep pace with inflation. Investment growth is needed to keep pace with inflation and investment growth is not guaranteed. It may be necessary to adjust the amount of income you require to take account of inflation. Moving to a Guaranteed Income (also known as an Annuity) If you decide to buy a Guaranteed Income in the future, the level of income you receive will depend on how much money you have to buy the Guaranteed Income and also the: annuity rates at the time, your age, health and lifestyle. I m aware of the implications of taking cash from my pension and am happy to proceed on this basis. Page 04 of 08 August 2017

5 Personal details 1. Title (Mr/Mrs/Miss/Ms/ Other eg Dr/Rev) 2. Surname 3. First name(s) in full 4. Date of birth (DD/MM/YYYY) 5. National Insurance Number 6. Marital status Single 7. Address House number Street Divorced/dissolved civil partnership Married/civil partnership Widowed/surviving civil partner Separated City/Town County Postcode 8. Contact details (we may need to contact you about your request) Daytime Evening Taking a lump sum How much of a lump sum do you want? OR I would like to take the remainder of my plan This is the lump sum amount we will take from your plan, before tax. August 2017 Page 05 of 08

6 Bank account details Please enter the details of the bank account you would like your money to go to. You must be named on the account. Bank/building Society Account No. Branch Sort Code You must fully complete this section even if we hold your bank details already. Name on bank card /account name Building society roll No. All future payments from your plan will be paid into this account. If this bank account is a savings account, please provide an original bank statement less than 3 months old or an ink certified copy of your statement. If we require any additional information we will contact you. How we will pay out the lump sum If you don t give us full instructions about how you would like your lump sum to be paid out, the following default process will apply: If we are paying a tax-free lump sum: We ll move a proportion of every investment from the savings to the drawdown part of your plan; We ll provide the tax-free lump sum by cancelling units proportionately from every insured fund (SLIP fund) that s moving from savings to drawdown (if there is not enough in the SLIP funds we ll pay the difference from the SIPP Bank Account). If we are paying a taxable lump sum: We ll cancel units proportionately from every insured fund (SLIP fund) held in the drawdown part of your plan and by taking money from the SIPP Bank Account. If your plan is invested in funds other than SLIP funds or if would want to give us specific instructions about the investments that you want us to sell into the SIPP Bank Account, complete the table below. Fund code Fund name Amount (as a %) Total (must add up to 100%) % Lifetime Allowance checks We are required to check whether the total value of all your pensions (excluding your state pension) exceeds the Lifetime Allowance (the limit is 1 million for the 2017/18 tax year). The Lifetime Allowance is a limit on the value of payments from your pensions, either lump sums or income, that can be paid out without triggering a tax charge. Is the combined value of your pensions, either in payment or not, greater than 500,000 and or do you have any form of protection registered? No 1. Are you about to take retirement benefits from another pension scheme or policy? 2. Have you ever taken any tax free lump sum or pension from another pension scheme or policy? 3. If you have answered yes to questions 1 or 2, have you exceeded your Lifetime Allowance? 4. If no, what percentage of your Lifetime Allowance have you used? % 5. Will the retirement benefits in this form exceed the Lifetime Allowance? No If you answer to any of these questions, we may contact you for more details.. No No No Page 06 of 08 August 2017

7 Protection from the Lifetime Allowance Have you registered or applied for (do not tick any boxes if you have NOT registered or applied for protection): Primary protection Enhanced protection Fixed protection 2012 Individual protection 2014 Fixed protection 2014 Individual protection 2016 Fixed protection 2016 Please forward a copy of any certificate(s) or letters you have received from HM Revenue & Customs. Important Information relating to this application Data protection All parties named on this form have a right to know that Standard Life holds personal data about them and the purposes for which it will be used. Please give them an opportunity to read this notice. We ll collect personal information in order to consider the application and, if the application is successful, to provide our services and manage our relationship and Standard Life s business and services. If the application does not go ahead, the information may be held on our records for up to seven years before it s deleted. The information collected may be disclosed to other Standard Life Aberdeen group companies (Standard Life Aberdeen plc and its subsidiaries), to professional advisers, to third party service providers and, where appropriate and lawful, to other organisations. Your information may be held or disclosed in countries outside the European Economic Area which may not have the same standard of data protection laws. Where this occurs, we ll take appropriate steps to adequately protect it. If you re an employee and your employer is making payments to your plan, we may disclose information to them about the payments they ve made. We and other subsidiaries of Standard Life Aberdeen plc. would like to contact you from time to time to keep you up-to-date with special offers, new products and services, newsletters and other promotions. We ll never pass your details to companies that aren t subsidiaries of Standard Life Aberdeen plc. for marketing purposes. If you do not want to be kept informed, please tick this box. If you d like to request a copy of the personal data we hold about you, please write to the Data Protection Co-ordinator at our Head office. We may charge a fee for providing this information. Money Laundering To comply with Money Laundering Regulations, we may verify your identity, by carrying out an online check with a reference agency. Where an online check is carried out, the agency will verify your identity against public records and it will also check whether you have a credit history (but it will not disclose any information about your actual borrowings). The agency will add a note to show that an identity check was made to your credit file, but this information will not be available to any third parties. We regret that we cannot offer an alternative unless the online check does not confirm your identity, in which case we ll carry out a manual check. Acceptance of this application is subject to satisfactory completion of identity verification checks within 30 days of the application date. August 2017 Page 07 of 08

8 Declarations made These are the declarations we need from you to process your application. You must tick each box below to confirm you understand them. My declarations I, or my employer, or a third party on my behalf, have not and will not significantly increase any future payments into a pension due to the tax free lump sum I may have chosen to receive. Standard Life hasn t provided me with advice or assessed the suitability of my choices. I understand that this means I ve less grounds for complaint in the future. I m aware of the options available to me and the tax implications of the choices I ve made and I m happy to proceed with this application. Before signing the form, please check you have completed all sections correctly. There will be a delay in paying your lump sum(s) if you haven t. To be a significant increase, the total increase in the payments must be more than 30% of the lump sum. I have read and understood this form and I want Standard Life to pay the lump sum I have requested to my bank account less any tax that may be applicable. I understand that I cannot cancel my request once I have submitted this form. Signature Date (DD/MM/YYYY) Please post this form to: FREEPOST Standard Life Dundas House 20 Brandon Street Edinburgh EH3 5PP We ll be in touch if we need to contact you to confirm your details. We ll aim to process your request within 5 working days of receipt of your fully completed and valid application. You should normally receive your payment within 10 working days after we receive the form. Please be aware that your fund will remain invested until we process your application and that its value may go up or down while it remains invested. Standard Life Assurance Limited registered in Scotland (SC286833) is the provider and scheme administrator of the Standard Life Self Invested Personal Pension Scheme, and Standard Life Trustee Company Limited, registered in Scotland (SC076046) is the trustee. Standard Life Assurance Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Standard Life Savings Limited, provider of the Wrap Platform, is registered in Scotland (SC180203) and is authorised and regulated by the Financial Conduct Authority. The registered office of each company is at Standard Life House, 30 Lothian Road, Edinburgh EH1 2DH Standard Life Aberdeen, images reproduced under licence. All rights reserved. Page 08 of 08 August 2017