Seaway Insurance Consultants

Pensions

• Pension Simplification
• Personal Pensions
• Stakeholder
• Company Schemes
• Annuities
• Income drawdown
• Phased Retirement
• Alternatively Secured Pensions

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Alternatively Secured Pensions

The Alternatively Secured Pension (ASP) was introduced as part of the simplification regime. The alternatively secured pension is only available from age 75 and is a form of Pension Fund Withdrawal.

These plans work in a similar way to Pension Fund Withdrawal plans, (see section on Pension Fund Withdrawal), but with the following differences:-

• The maximum income is 90% of the appropriate GAD rate,  based on an age of 75.

• Reviews to set the maximum income limit must be undertaken annually, but the annuity rate used must continue to be based on an age of 75, rather than a members actual age.

• In any event, the client must take a minimum income of 65% of the appropriate GAD rate based on an age of 75.

These restrictions are designed to limit the possibility of exhausting a members pension funds before death. ASP payments may be guaranteed for up to 10 years.

Alternatively Secured pension plans are relatively complex and are not suitable for everyone, but they can for some individuals offer a flexible approach to retirement in later life, particularly if annnuity purchase is not an attractive option (for whatever reason). Careful consideration must be given to an individuals personal circumstances. We strongly recommend advice from us be sought if you are considering this option.