Who should read this page?
This page is intended for policyholders who have not yet started to receive their pension benefits from their Rothesay policy.
When we provide you with details of your options, we always quote a 'Full pension'. In most cases we will also quote a 'Reduced pension' with a tax-free lump sum option. We will quote other pension figures based on lower tax-free lump sum amounts on request.
The tax-free lump sum is known as a Pension Commencement Lump Sum (PCLS). The maximum amount of tax-free lump sums that you can take from all pension sources is usually £268,275. For more details click the link below.
Things to consider
Before choosing a reduced pension option, you should consider the implications of exchanging regular pension payments for life for a one-off lump sum. We have included some points below that you may want to consider. Depending on your personal and financial circumstances, there may be some additional points that you will also want to take into account.
You may want to appoint a financial adviser to help you. If you do not have a financial adviser, you can find one clicking the link below. MoneyHelper's 'Find a retirement adviser' page will open in a separate window.
Think about:
In some cases, if you choose to take a reduced pension with a lump sum, you will also be reducing pension payable to a dependant on your death.
The lump sum will not affect your entitlement to the State Pension. However, it is possible that payment of the lump sum could affect other State and/or any means-tested benefits. Please see the section on State benefits and/or means-tested benefits below for more information.
If you are thinking of taking the lump sum and using it to pay off debt, we suggest you seek specialist debt advice before making this decision. You could use MoneyHelper’s debt advice locator to help you find the advice you need by clicking on the link below. The debt advice locator page of MoneyHelper's website will open in another window,
If you are considering investing a lump sum please be aware that:
If you choose a reduced pension with a one-off lump sum, your capital will be higher than if you had chosen the full pension option, and your income will be lower. This may affect State and/or any means-tested benefits, such as housing benefit, council tax reductions and funding towards personal care.
Some means-testing is based on your income (e.g. pension payments such as those from your policy with Rothesay) and some on your capital (e.g. your savings, investments and property). Different means-testing rules apply depending on whether you are under or over the State Pension age.
Information from GOV.UK
You can find out specific information relevant to your own circumstances by clicking the link below. The 'Check benefits and financial support you can get' section of GOV.UK will open in a new window.
Check benefits and financial support
Further help
If you have any questions about how the offer would affect your State and/or any means-tested benefits, please call us on 0330 134 4680 if calling from the UK, or +44 (0)114 450 1211 if calling from overseas.
Who you should contact if you have any questions
We are here to help. You can contact us using the contact details that you usually use for your policy. If you do not have these to hand you can use the search function below.
The following organisations may also be able to provide information that will help you with your decision about whether to exchange regular pension payments for life for a one-off lump sum.
Please note, each of the links below will open in a new window.
Designed to make your money and pension choices clear. It is backed by the government and free to use.
0800 138 7777
Helps people resolve their legal, money and other problems by providing free information and advice. Please see your local phone directory for details of your nearest CAB office.
Responsible for the collection of most taxes within the UK. They operate a pensions helpline that can give advice and support on any matters relating to tax.
0300 200 3300 (UK)
+44 (0)135 535 9022 (Overseas)
Tax Help is a service from the charity Tax Volunteers, funded by HMRC, the tax profession and a number of insurance companies, including Rothesay. It provides free, independent and expert help and advice regarding tax.
0333 207 5652
Tax Help's page for Rothesay policyholders
If you do not have our contact details to hand, please enter the previous scheme or insurer for the policy in the search bar below to show the contact details you need.
Examples of previous schemes include: GEC 1972 Pension Plan (telent), Lehman Brothers Pension Scheme, The ASDA Group Pension Scheme.
Examples of previous insurers include: AEGON/Scottish Equitable, Prudential/PAC, Zurich/Allied Dunbar/Eagle Star.
Please use this form for general enquiries regarding individual policies. If you are notifying us of a death please go to our death notification page.