Unsecured Pension
Similar to existing pension fund withdrawal, this option will allow you to take a tax free cash sum, where available, and thereafter either draw an income from your pension savings, or use part of those savings to purchase a series of short-term annuities. Unsecured pension options are subject to Government limits on the maximum income that may be taken. However, no minimum income requirements will apply. Unsecured Pension options are only available up to age 75.

Lifetime Annuity (also referred to as a Secured Pension)
This will allow you to purchase an annuity from your pension savings in much the same way as is possible at present, although the range of available products may increase. It is expected that this option will include conventional annuities, both level and those that increase in payment, investment-linked annuities, and specially enhanced annuities. Options such as dependant's provision and guarantee options will continue to be available, whilst a new 'value protection' option may allow a lump sum to be paid out on death before age 75.

Alternatively Secured Pension (ASP)
Designed for individuals wishing to avoid purchasing an annuity with their pension savings, ASP is essentially a form of pension fund withdrawal. Government rules will limit the maximum income that may be taken, although no minimum income requirements will apply. ASP will only be available from age 75.