Small Self-Administered Scheme

Benefits from age 55 to age 77

Pension commencement lump sum

The maximum tax-free lump sum that can be taken is 25% of the fund used to provide pension benefits up to the lifetime allowance and must be taken by age 75. Therefore, the maximum tax-free cash is as follows:

Tax Year	Maximum Tax-free Cash
2010/2011 to 2015/16	£450,000

Individual members may be entitled to more than this amount if pension fund protection has been granted.

Pension

Any pension taken from the fund will be treated as earned income and will therefore be liable to income tax. Pension income may be taken from age 55 to age 77 as listed below.

A scheme pension, paid to the member by the scheme over the member's lifetime.
A lifetime annuity purchased from a life assurance company. The annuity must be payable up to the member's death or the end of any guarantee period should the member die within this period.
An unsecured pension, where the pension is taken from the fund via income drawdown. The amount of pension that can be drawn down is between 0% and 120% of the amount of annuity that could be provided using the Government Actuary's Department's annuity rate applicable for the member at the time they take benefits. The level of unsecured pension must be reviewed at least every five years.
A short-term annuity purchased from a life assurance company. A short-term annuity is payable for a term of no more than five years and must end before the member reaches age 75.

This information relates to the Rowanmoor Pensions SSAS.