Prudential Retirement Account
The Prudential Retirement Account is a pension plan that has two elements all in one place: a Pension Savings Account that allows you to contribute and grow your pension fund for your retirement in a flexible way and another Pensions Income Account that allows you to take benefits once you're ready to withdraw from your investments.
If you're at the stage where you're still looking to contribute towards your retirement, please read the information on the Pension Savings Account page.
- Investments from your Pension Savings Account are moved into this account to allow you to access your money, including a tax free cash option.
- You can transfer other drawdown plans into this Income Account.
- Flexibility on how you take your pension benefits.
Risks and considerations
- The value of your investment can go down as well as up and you may not get back the amount you put in.
- Transferring other plans into one account may have restrictions.
- The impact of taxation on your income depends on your individual circumstances and is subject to change.
When you wish to take benefits from The Pension Savings Account you can move some or all of your benefits over into the Pension Income Account, which allows you to have access to drawdown and tax-free cash. Both of these accounts (Pension Savings and Pension Income) are part of the Retirement Account.
If you’re approaching retirement and have existing drawdown plans elsewhere, you can transfer them into the Retirement Account, which means that all of your benefits are held in one place. Please seek financial advice before transferring any other plans as there may be some restrictions.
Taking benefits from the account
There are three ways to use the Retirement Account to take benefits:
- take cash lump sums (also known as Uncrystallised Funds Pension Lump Sums or UFPLS) on a regular or one-off basis from your Pension Savings Account.
- take drawdown payments, where your money stays invested and you take as much or as little income as you need from your Pension Income Account. If you're in capped drawdown, there's a maximum amount you can take that is set by the government.
You can also take a combination of the above.
With lump sums or drawdown, if investment returns are low and/or you take out too much then your money may run out and you may need to rely on other income. Also, you may not get back what you put in.
Each time you take a cash lump sum or move money into drawdown, you can usually take out 25% of the money tax-free. Please read the Taking Your Pension Benefits and Tax Information leaflet as this gives you more detail and examples of taking benefits from your account.
Deciding how to take you benefits is one of the most important decisions you are likely to make. Our retirement checklist could help ensure your planning is on track.
The following documents explain the Retirement Account in detail and the options you need to consider when taking benefits from your Retirement Account.
Key Features of the Prudential Retirement Account
Terms and Conditions of the Prudential Retirement Account
Your With-Profits Plan - a guide to how we manage the Fund (PruFund (Pricing Series E) range of funds)
Your With-Profits Plan - a guide to how we manage the Fund (PruFund (Pricing Series D) range of funds)
Taking Your Pension Benefits
Guarantees available on PruFund investments in the Prudential Retirement Account
PruFunds Fund Guide - Prudential Retirement Account
If you would like to get some guidance on what to do with your pension, you can get free and impartial help from the following services, set up be the government:
- Money Advice Service (the government has announced that this service would be abolished and replaced)
- Pension Wise
If you have a query on your existing Retirement Account, please speak to your adviser first. Alternatively you can also contact us on 0345 268 0488 (Mon-Fri 8.30am-6pm, calls may be recorded for security and quality purposes) and our customer services team will be happy to help.
We are not recommending one product over another. We recommend you seek financial advice if you’re unsure about what product could be right for you. The information above is based on our understanding of current taxation, legislation and HM Revenue & Customs practice, all of which is liable to change without notice. For more information please visit www.hmrc.co.uk.
We recommend that you use Pension Wise, a government service offering free and impartial guidance to those aged 50 or over. Find out how to access this by visiting www.pensionwise.gov.uk or call 0300 330 1001 to book an appointment. This service is available on the internet, over the telephone or face to face at a Citizens Advice branch.
You may also like to contact a financial adviser.
To find out about starting a Prudential Retirement Account or transfer a pension to us