How you can take your money

The normal retirement age for your IMI pension is 65, but you can currently take your pension any time from age 55 to 75.

If you are considering retiring, you can log in to your Mercer Money account for an up-to-date value of your pension pot or contact Scottish Widows, the Plan administrator here.

What are my options at retirement?

1) Tax-free lump sum

You can usually take up to 25% of your retirement savings as tax-free cash.

2) Cash lump sums

You can take all or part of your savings in one or a few lump sums until it runs out. If you have already received your 25% tax-free lump sum, the rest is added to your other income and is taxable. Your remaining money stays invested, which gives it the potential to grow, but investments can go up or down.

3) Drawdown

This option gives you flexible access to your money whilst allowing your savings to remain in the Plan and invested. Drawdown provides the flexibility to choose how and when you withdraw your savings, either as a regular income or as a series of lump sums. It is important to remember that income drawdown may be flexible, but it will be your responsibility to ensure that your retirement income does not run out too soon.

4) Annuity

An annuity is a contract with an insurance company which guarantees to provide you with a regular income, normally for the rest of your life. Assuming you purchase an annuity using the total value of your savings, you will have no savings left in the Plan.

Further information on your retirement options can be found in the ‘Your Retirement Options’ guide.

Destination Retirement

This is an online retirement planning and financial advice service, with support from retirement specialists. Destination Retirement is provided on Mercer’s behalf by HUB Financial Solutions, which is part of Just Group plc – a FTSE-250 listed financial services company. HUB Financial Solutions are a specialist in the retirement market. The service:

• Helps you envisage what you’d like life in retirement to look like;
• Gives you a free personal retirement plan that helps you make the most of your pensions, savings and investments; and
• Provides fully-regulated financial advice.

If you choose to follow the advice, the service will set up your retirement plan for you and provide support to keep you on track throughout retirement. Ongoing fees and charges will only apply if you decide to put your plan into action. These will be explained before you proceed.

Further information can be found by accessing your Mercer Money account or visiting the Destination Retirement website.

Pension Wise

Pension Wise is a free and impartial Government service established to help you make a decision about how to take your savings at retirement. Find out more on the MoneyHelper website.