The Retirement Account

The certainty of an annuity and the flexibility of drawdown in one simple tax-advantaged wrapper

Technical summary

Our technical summary provides you with a quick reference to the key information about The Retirement Account. We have produced this useful information on a simple document, which you can download here

The Retirement Account

Minimum (Retirement Account) age at entry Age 55 unless there is an entitlement to take benefits
at an earlier protected age, in which case age 50
Maximum age at entry None for Pension Drawdown
Age 85 for Guaranteed Annuity
Minimum beneficiary/dependant age None for Pension Drawdown and Guaranteed Annuity Money Back Guarantee
Age 35 for Guarantee Annuity dependant (assumed healthy if below 50, otherwise underwritten)
Maximum dependant age for Guarantee Annuity Age 85

Minimum initial Retirement Account transfer value £20,000 after tax free cash and adviser fee
Minimum initial Guaranteed Annuity purchase price £10,000 (within overall Retirement Account minimum*)
Maximum Retirement Account transfer value None
Maximum Guaranteed Annuity purchase price £3 million**
Minimum residual Pension Drawdown unit value £1,000 for Pension Drawdown only cases (no minimum for Pension Drawdown and Guaranteed Annuity cases)
*Provided the minimum Retirement Account requirement of £20,000 is met and at least £10,000 is used to secure Guaranteed Annuity (assuming that Guaranteed Annuity component is required), there is no minimum for any residual Pension Drawdown fund.
**The current maximum amount applies to all guaranteed annuities (within The Retirement Account or standalone) that have been purchased with Retirement Advantage and/or MGM Advantage.

Maximum Retirement Account income level None
Minimum Retirement Account income level £20 
Minimum Pension Drawdown ad-hoc withdrawal £100 
Minimum Pension Drawdown unit purchase from cash account £100
Income frequencies Monthly, quarterly or yearly and linked to TRA start date
Income payment dates 12th, 20th and 28th (or earlier, for example if your payment date falls on a weekend or Bank Holiday)
Ad-hoc Pension Drawdown withdrawals Paid on next processing date
Income increases For Guaranteed Annuity and Pension Drawdown mixed cases, Guaranteed Annuity pension increases will only apply to the Guaranteed Annuity component
Payment method BACS

Dependant’s Income 50%, 66%, 75% or 100% of annuitant’s income. Payable only to named dependant
Income Guarantee Up to 30 years (whole years). Payable only to named dependant if combined with Dependant’s Income
Commutation of Income Guarantee Lump sum commutation is available if the beneficiary requests it and is calculated at the time of claim
Money Back Guarantee Up to 100% of purchase price (single life and joint life second death). Payable to named dependant or other beneficiary. Can’t be taken out alongside Income Guarantee
Dependant’s Income and Income Guarantee combined Maximum income for the remainder of any income guarantee period is the level of the annuitant’s income. The dependant will not receive the full value of both the Guaranteed Income period payment and the Dependant’s Income at the same time
Pension increases 1% increments up to 10% or linked to the RPI

Initial Retirement Account set up charge £150

Pension Drawdown tiered annual charge (deducted monthly)

Up to £25k 0.6%
Between £25k and £75k 0.3%
Between £75k and £150k 0.2%
Excess above £150k 0.1%
Pension Drawdown Switch charge No charge, but we reserve the right to levy a charge if more than 12 switch requests are received in a 12 month period
Addtional administration charge We may charge for additional services outside of normal administrative activities on a time cost basis. This will be charged at £100 per hour. 
Here’s an example of how the charges work:
£170,000 invested into Pension Drawdown Initial TRA set up charge = £150
PD Tiered annual charge (deducted monthly) Charge % Charge £
Tier 1 - £25,000 (0k - 25k) 0.6% £150
Tier 2 - £50,000 (£25k - £75k) 0.3% £150
Tier 3 - £75,000 (£75k - £150k) 0.2% £150
Tier 4 - £20,000 (£150k - £170k) 0.1% £20
Total charges £470
As a percentage of total investment £170k 0.276% + fund management charge (OCF)

Adviser payment options Initial fee (% or £)
Ongoing fees on PD fund value only (% only), plus ad-hoc fees available (% or £)
Adviser fee payment date 20th of each month (or earlier, for example if your payment date falls on a weekend or Bank Holiday)

Guaranteed Annuity rates Healthy/Postcode and Occupation/Health and lifestyle
Transfers out of Pension Drawdown fund Partial or full transfer of Pension Drawdown funds is available
Cancellation period 30 day cancellation notice issued on receipt of the application form
Interest on Cash Account Calculated on balances daily and added monthly at the Bank of England base rate minus 1.25%. If a negative amount then no interest will be due
Beneficiary Retirement Account Beneficiaries have the option of establishing their own Retirement Account in respect of any residual Pension Drawdown fund and Money Back Guarantee payment. A Retirement Account will automatically be established in respect of any Dependant’s Income and Income Guarantee
Professional qualifications The Retirement Account is written under Pension Drawdown legislation therefore advisers must be CF30 registered with the FCA and hold relevant qualifications to give advice on the product

Fund charges

Retirement Advantage fund name Management style Risk profile AMC OCF

Exclusive to The Retirement Account -

Protected Index Portfolio

Active Cautious Protected 0.75% 0.86%
The objective is to provide investors with long term capital growth from a multi-asset portfolio and to deliver protection at 80% of the highest net asset value ever achieved by the fund.
Investec Multi-Asset Protector 2 Active Cautious Protected 0.80% 1.29%
This fund aims to provide capital growth from a multi-asset portfolio and to deliver protection at 80% of the investment’s highest price to date (however this is not guaranteed). The fund invests in UK and global equities, bonds, property, commodities, cash and alternatives. From time to time the allocation to low-risk instruments and cash will be increased.
Henderson Cautious Managed Active Cautious 0.74% 0.83%
This fund aims to provide income and long-term capital growth by investing in a combination of equities and bonds worldwide. No more than 60% of the fund will be invested in equities.
Standard Life Investments - GARS Active Cautious 0.86% 0.94%
This fund aims to provide positive investment returns in all market conditions over the medium to long term. The fund uses both traditional assets and other financial instruments, resulting in a very diverse portfolio. This fund makes extensive use of derivatives. These are more complex investments, and it is important that investors understand that they carry additional risks in adverse market conditions.
Invesco Perpetual Distribution Active Cautious 0.92% 1.12%
This fund aims to achieve a combination of income and capital growth over the medium to long term by investing globally in equities, bonds and other assets. No more than 60% of the fund will be invested in equities.
AXA Framlington Balanced Active Balanced 0.75% 0.80%
This fund aims to achieve capital growth through investments in a broad range of assets anywhere in the world, balancing risk and return for investors.
Jupiter Merlin Balanced Portfolio Active Balanced 0.85% 1.76%
This fund aims to achieve long-term capital growth with income by investing mainly in other funds across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and property.
AXA Distribution Active Balanced 0.85% 0.87%
This fund aims to achieve growing income with some prospects for capital growth over the medium to long term.
Threadneedle Global Equity Active Adventurous 1.00% 1.18%
This fund invests in a selection of other funds managed by Threadneedle. The fund will invest worldwide and at least two-thirds will be invested in funds that invest in equities. 
Jupiter Merlin Growth Portfolio Active Adventurous 0.85% 1.79%
This fund aims to achieve long-term capital growth by investing mainly in other funds across several management groups. The underlying funds invest in international equities, fixed interest stocks, commodities and property, with a core in the UK.
Henderson Global Equity Income Active Adventurous 0.85% 0.95%
This fund aims to achieve an income better than the MSCI World stockmarket index with the potential for long-term capital growth.
Insight Liquidity Active Cash 0.10% 0.10%
This fund aims to preserve capital and daily liquidity, and will typically invest in bank deposits, certificates of deposit, and other secure assets.
Cautious Index (Vanguard/Insight) Passive Cautious 0.25% 0.25%
To achieve capital preservation with some opportunity for growth in the medium term by managing the asset allocation of a portfolio of predominantly fixed income and cash with some equities.
Balanced Index (Vanguard/Insight) Passive Balanced 0.25% 0.25%
To achieve a combination of capital growth and capital preservation by managing the asset allocation of a portfolio of predominately equities and fixed income.
Adventurous Index (Vanguard/Insight) Passive Adventurous 0.25% 0.25%
To achieve long term capital growth by managing the asset allocation of a portfolio of predominantly UK and overseas equities.