Flexible Retirement Plan (with SIPP options)
Minimum initial payment £5,000
Minimum monthly payment £100
Tax-free cash lump sum available
Wide range of investments
Access to the Self-Invested Personal Pension (SIPP) option
Access to the drawdown option
Benefits for your dependants
The Flexible Retirement Plan is designed to help you save towards your retirement in a tax-efficient way, and with average life-expectancy increasing, saving in a pension could be a prudent way of helping to fund the lifestyle you want in retirement.
As the name suggests, the Flexible Retirement Plan offers a range of solutions to meet your changing needs, and is therefore available through a financial adviser. Within the plan, you'll have access to a personal pension, and if you'd like more control over your investment options, you can get the Flexible Retirement Plan with SIPP (Self-Invested Personal Pension) options. You'll also have access to Drawdown within the plan - allowing you to draw an income from your pension, which you can find out more about below.
- Make flexible payments - regular or one-off payments or a combination of both. Invest as little as £100 each month or a £5,000 initial contribution.
- Wide range of investments to choose from - you'll have access to our:
-Core multi-asset funds, including With-Profits and PruFund, with guarantees available. See the latest PruFund expected growth rates below.
-PruSelect range, chosen by independent research company, Morningstar OBSR.
-Five Dynamic Portfolios targeting different levels of risk and potential return and our unique combination of experts - Prudential's Portfolio Management Group for asset allocation and Morningstar OBSR for fund selection and recommendation.
-There is also a lifestyle option to help you manage risk by automatically switching into funds with lower risk profiles as you approach your selected retirement age.
- Tax relief* - subject to HM Revenue & Customs (HMRC) limits, for every £80 you invest in your pension, the government will pay an extra £20 tax relief. If you earn above the basic rate of tax, you can claim additional tax relief through your tax self-assessment form. See our tax relief calculator for more or read about the tax benefits of saving in a pension. Note that pensions in payment are taxed as earned income.
- SIPP options - if you invest in our SIPP options you have an even greater choice of investments through our SIPP fund range. You can choose from over 1,300 funds through the Cofunds supermarket with our lower cost FundSIPP (up to 20 funds) or the full range of investments through the Full SIPP. The SIPP option can be switched on or off at any time so you pay only for what you use.
Read more about the SIPP option or our FRP Fund Guide for more on the funds offered under the plan. Bear in mind that the value of your investment may go down as well as up and you may not get back your original investment.
- Drawdown option - this allows you to draw an income direct from your pension fund until you are ready to buy an annuity with your remaining pension fund. Read more about the Drawdown option. You can also find out more about turning your pension into an annuity in our annuity guide.
- Choice of how to take benefits -From the 6th April 2015 regulations allow you added flexibility in how you draw your pension savings. There will be four main options which may be used in combination:
- Take a single or series of cash lump sums from your pension savings - Uncrystallised Funds Pension Lump Sum.
- Flexi-access drawdown - a new form of drawdown which will allow you to take an unlimited amount of income or lump sums from a pension fund. This will replace flexible and capped drawdown, although existing capped drawdown plans will continue.
- A pension annuity - an investment that guarantees to pay a secure income for the rest of your life, regardless of how long you live.
- Pension directly from a pension scheme - occupational pensions schemes are not changing. You will still be able to draw a pension from any occupational pension scheme you are a member of.
You can see the latest expected growth rates for PruFund Growth Pension Fund and PruFund Cautious Pension Fund available through our Flexible Retirement Plan in the table below.
Please note the following about the current rates:
- The rates are effective from 25 November 2014.
- The Expected Growth Rates quoted below are shown before product charges.
- They are the annualised rates which will be applied daily to increase the unit price of each fund and are set quarterly by the Prudential Directors having regard to the expected long term investment return on the assets of each fund.
- The Expected Growth Rates set at future quarter dates are not guaranteed and may be higher, the same or lower than those applying at the start of your investment.
- The unit price may be adjusted at the start of each quarter or, more rarely (subject to the underlying asset performance), during the quarter, which will affect any growth you receive.
Fund Expected Growth Rates before charges PruFund Growth Pension Fund 7.30% p.a. PruFund Protected Growth Pension Fund 7.30% p.a. PruFund Cautious Pension Fund 6.70% p.a. PruFund Protected Cautious Pension Fund 6.70% p.a. PruFund 0-30 Pension Fund 6.40% p.a. PruFund 10-40 Pension Fund 6.90% p.a. PruFund 20-55 Pension Fund 7.10% p.a. PruFund 40-80 Pension Fund 7.40% p.a.
Read more about expected growth rates.
*This is based on our understanding, as at April 2015, of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice. The impact of taxation (and any tax relief) depends on individual circumstances.