Tax-free lump sum

Under current tax rules, when you retire you can take up to 25% of the value of your Retirement Savings account as a tax-free lump sum.

Retirement age

The earliest you can take the money out of your account is 55. The Government wants to raise this ‘minimum retirement age’ to 57, from 2028.

Pension rule changes

From April 2015, the rules on how you can use your retirement savings changed. The changes give you a lot more options. For example, you can take all of the money in your account as cash, or take an income from your account while the rest remains invested, or you can buy an annuity. You can find out more on this website: www.moneyhelper.org.uk

If you die

If you die before retirement, the money that has built up in your Retirement Savings account will be paid to your loved ones.

The AE Scheme does not provide any additional benefits on death. However, life assurance cover of four times your pay is available for members of the BRSP, rising to five times your pay after five years’ membership. (This benefit ceases at age 75.)

It’s important to update a Nomination of Beneficiary Form so that we know who, in the event of your death, you would like to receive any benefits. Although we will try to follow your wishes, it’s important to understand that the form is not legally binding. Doing it this way means that your loved ones won’t have to pay inheritance tax on the money.

If you leave

If you leave the company, or opt out of the AE Scheme, you can keep your account invested in the Scheme or transfer your retirement savings to another qualifying pension scheme.

The company’s contributions and any investment growth will be yours to keep (as long as you don’t opt out in your first month of membership).