Retirement Account

Retirement Account is designed to support you throughout saving for your retirement, taking your pension savings, or both.


A pension that allows you to phase in your retirement

Save

While receiving favourable tax treatment

Have control

Over the way you access your benefits

Manage

The move from work to retirement

Key features

Flexibility – Retirement Account has two parts.

  • ‘Retirement Planning’ - Holds your pension savings pre-retirement.
  • 'Retirement Income' - Holds your pension savings post-retirement and allows you to take income drawdown.

You have the flexibility to save and take your pension savings when and how you choose.

  • Investment choice - Choose from a range of investment options depending on your retirement goals, how you plan to take your pension savings and how much risk you want to take.
  • Clear charges – With a simple and clear charging structure that separates the different types of charges, you can see exactly what you’re paying for.
  • Up-to-date information - You'll be able to view all transactions online, and keep track of how your investments are performing.

Key benefits

Retirement Planning

  • You can consolidate your pension savings in one account, offering you choice and control.
  • Wide choice of investment options.
  • You normally get tax relief on the payments you make.
  • You can take some or all of the value of the Retirement Planning part as a cash lump sum (pension encashment). 25% of the value will be tax-free and the remainder will be taxable.
  • You can stay in Retirement Planning until age 75. You will need to decide how to access your pension savings by then.

Retirement Income

Moving your pension savings into Retirement Income allows you to take a flexible, taxable income, while giving the remainder of your Account the opportunity to grow.

  • You can take up to 25% of the amount you move into the Retirement Income part as a tax-free lump sum. You don’t have to take an income.
  • Income can be paid on a monthly, quarterly, half-yearly or yearly basis.
  • You can change the frequency and amount of income at any time.
  • You can also take ad-hoc income payments when you need them.
  • You can stay in Retirement Income until age 99.
  • You can view our Retirement Account guide here for more detailed product information.

Risks

  • Pensions are a long-term investment. The retirement benefits you receive from your pension plan will depend on a number of factors including the value of your plan when you decide to take your benefits which isn’t guaranteed and can go down as well as up. The value of your plan could fall below the amount(s) paid in.
  • The value of the tax benefits of your Retirement Account depend on your individual circumstances. Tax rules and circumstances may change in the future.
  • High levels of pension encashments or income may not be sustainable and in some cases could reduce the value of your Retirement Account to zero. You should consider the impact this might have on your income in retirement.

Frequently asked questions

We have broken the overall charges down into their component parts, so you should always have a clear picture of the costs.

Service Charge*

We take this charge for setting up and managing your Retirement Account. It is calculated based on the value held in both the Retirement Planning and Retirement Income parts.

As the Service Charge table shows, if the total value of your Retirement Account increases, the rate of Service Charge can decrease. If the total value of your Retirement Account decreases, the rate of Service Charge can increase.


Total value of Retirement Account Service charge (per year)
£0 £30k 0.90%
£30k £50k 0.40%
£50k £250k 0.30%
£250k £500k 0.25%
£500k £1m 0.20%
£1m+   0.10%

The Service Charge will be split proportionally between the Retirement Planning and Retirement Income parts of your account. It will be deducted monthly and the first Service Charge will be deducted one month after the Retirement Account start date.

*The tables above shows the standard rates that apply for new Retirement Account applications. These rates may change in the future.


Investment charges

The investment charges depend on the type of investments you choose. If you have an adviser and you’re invested in Scottish Widows Pension Funds, see the Retirement Account Scottish Widows Pension Fund Charges guide for details. For other investments, speak to your financial adviser.

If you apply for a Retirement Account from a Scottish Widows adviser you will not have access to the full range of investment options available – we will tell you which options are available when you apply and provide you with the relevant investment guide including charges.


Adviser charges

You only have to pay this charge if you buy a Retirement Account from an adviser. This is the cost of any advice and/or services that your financial adviser provides in relation to your Retirement Account and you will have agreed any amounts to be paid to them. Your adviser will normally offer you two payment options:

1.Pay your adviser directly.
Or
2. Have the costs deducted from your Retirement Account.

Minimum payments into Retirement Planning


When you’re setting up a new Retirement Account

The minimum payments into a new Retirement Account, after any tax relief has been added, are:


Payment type Minimum payment (gross)
Transfer £10,000
Single £10,000
Yearly £2,400
Monthly £200

Please note – if there is more than one person paying into your Retirement Account, the different payers can reach the minimum payment amount between them. Different payment types can also be combined to achieve the minimum amount.


Once your Retirement Account has been set up

The minimum additional payments into an existing Retirement Account, after any tax relief has been added, are:

Payment type Minimum payment (gross)
Transfer £2,000
Single £2,000
Yearly £600
Monthly £50

Minimum movements into Retirement Income

When you’re setting up a new Retirement Account or moving pension savings into Retirement Income for the first time

The minimum movement is £10,000 (before any tax-free lump sum is taken), provided there is at least £30,000 in the Retirement Planning part before any amounts are moved into Retirement Income.


Once your Retirement Account has been set up

The minimum additional movement is £2,000 (before any tax-free lump sum is taken). Any remaining balance in the Retirement Planning part, if lower, can also be moved to Retirement Income, even if this is less than £2,000.

To and through retirement, we want to make sure that you have the investment choice that you need. We aim to cater for straightforward investment requirements, as well as those that are more complex, giving you both freedom and flexibility, and providing a number of investment solutions to help support your income requirements throughout your retirement.

When considering your options here, it’s important to know that a Scottish Widows adviser can only discuss Scottish Widows Pension Funds and Strategies with you – others, for example the Fund Supermarket, you can only discuss and access via an independent financial adviser (IFA).

Below you’ll find more information about the different investment solutions and who you can talk to about them.


Scottish Widows Pension Funds and Strategies

  • Over 150 funds covering a wide range of asset classes, geographical locations, sectors and management styles.
  • No minimum investment required.
  • Currently no charge for switching between our Pension Funds.
  • You can also choose from a range of Governed Investment Strategies, which gradually move your Retirement Account into lower-risk investments as you approach your selected retirement date. These strategies will automatically adjust so that your Retirement Account is invested in one of three ways, depending on whether you want to purchase an annuity, keep your funds invested and take an income, or take a cash lump sum.
  • Our Premier Governed Investment Strategies are slightly more expensive, but aim to provide better potential growth.
  • Governed Investment Strategies and Premier Governed Investment Strategies are available for Retirement Planning only.

For more information, you can:

  1. 1. Read our guides:
  2. 2. Speak to either a Scottish Widows adviser or an IFA.

The Fund Supermarket:

  • Offers a range of funds from a variety of fund management groups, with different fund services, sizes and costs.
  • Gives you access to approximately 2,600 funds – your IFA can help you select those most suitable for you.
  • Offers the potential to benefit from lower charges on some funds than if you were to buy them direct.

We recommend that you speak to your IFA for more information on the Fund Supermarket.

Please see our Fund Supermarket Investor’s Guide

There are a number of other investment options available but, for these, only an IFA can discuss your options with you and/or make a recommendation. We have a number of guides available to help you have that conversation and you can find these below.


Discretionary fund management

You and your IFA may decide that your investment needs are such that you require a more bespoke service to manage your Retirement Account investments.

We offer a range of Discretionary Fund Managers (DFMs) for you to choose from:

  • Brewin Dolphin Securities
  • Brooks Macdonald
  • Cazenove Capital Management
  • Charles Stanley
  • Tilney Investment Management
  • Investec Wealth & Investment
  • Quilter Cheviot
  • Rathbone Investment Management

DFMs manage your investments, making investment decisions that bear in mind your circumstances, stated aims, attitude to risk, and other requirements. They can provide investment guidance, detailed research and risk profiling services.

Working with your IFA, the DFM will create and manage a bespoke investment portfolio on your behalf.


Share dealing

  • Separate share dealing accounts can be set up for each part of your Account.
  • Invest directly in stocks and shares listed on an HMRC recognised stock exchange, with our share dealing partner, Stocktrade.

If you have an independent financial adviser (IFA) and would like more details, see the Retirement Account Share Dealing Guide


Fixed-term cash deposit (subject to availability)

  • Aims to protect the value of your investment.
  • Can allow you to benefit from competitive terms negotiated with deposit-takers.
  • Offers a fixed level of interest, payable at the end of the term.

If you have an IFA and would like more details, see the Retirement Account Fixed Term Cash Deposit Guide


Commercial property

  • Invest in your existing business premises or other property, subject to our approval.
  • Note that you will be unable to release the equity in the property until you retire.

If you have an IFA and would like more details, see the Retirement Account Commercial Property Administration Guide

It’s important to keep up-to-date with how your Account is performing and keep track of your pension savings.

To help you do this, you can view your Retirement Account online where you’ll have access to the following information:

  • all transactions within your Retirement Account
  • real-time valuations
  • your Retirement Account investment history.

We’ll also send you a full statement each year.

You can normally access your pension savings from age 55 or over in the following ways. You don’t have to choose just one option, you can combine them to suit your own needs.


Retirement Account allows you to pass on the value of your Account when you die, as a lump sum or an income.

If you die before you are 75, these benefits are normally tax-free. If you die on or after age 75, some tax may be due.

Inheritance tax is not normally payable.

It's important to keep your nominations up to date.

From an independent financial adviser

An adviser will be able to help you decide whether a Retirement Account is suitable for you, can help to understand your attitude to risk, and advise you on the mix of investments that may best suit your retirement goals.

This will take into account factors such as your age, health and your wishes regarding provision for any dependants you may have. You can then make clear decisions based on clear choices.

If you haven't got a financial adviser:


Or


From a Scottish Widows adviser

A Scottish Widows adviser will help you in the same way that an independent financial adviser will but we can only advise you on investment funds and Strategies provided by Scottish Widows.

You can speak to a Scottish Widows adviser by calling 0345 845 1004.

Alternatively, request a call back and we’ll call you at a time that’s best for you.


If you don’t think you need financial advice, you can set up a Retirement Account at the same time as consolidating any other pensions to Scottish Widows.

You can get more information on consolidating your pensions here.

Pension basics

Whatever stage of the retirement journey you’re at, get the basics before you go any further.

Find out more

Pension freedom

You now have more choices when it comes to taking your pensions and retirement income.

Find out more

Combine your pensions

Got more than one pension? Then you could think about putting them all in one place. Combining your pensions with Scottish Widows is simple and we won't charge you for this service.

Pension transfers