Your personal retirement plan
Take steps towards the retirement you want – and be rewarded for itA retirement plan from VitalityInvest has unique features designed to boost your returns – and help you get the retirement you want.
With a VitalityInvest Retirement Plan, you’re able to invest in a wide selection of funds. You’ll get tax relief on the money you put in. Any growth, interest and dividends will be tax-free, though you may need to pay tax on any money you withdraw.
How it works
Currently, when you reach 55, you can access your money in a way that works for you. One option is to take 25% as a tax-free lump sum, using the rest to provide an income.
Any tax benefits you receive depend on your tax position as well as current tax law – both of which may change in the future.
At a glance
Start a plan with regular contributions of £200 a month, or with a lump sum of at least £3,600 . There’s no minimum amount for additional lump sums.
✓ Easy to manage
Stop, start, increase or decrease regular contributions, and pay in lump sums at any time up to your annual tax allowance.
✓ Simple transfers
We make it easy for you to bring eligible pension pots together into one VitalityInvest Retirement Plan.
It's important to understand that pension transfers are a complex area and may not suit everyone. Before going ahead with a pension transfer, we strongly recommend that you compare all the charges, features and services offered. To find out what else you should think about before transferring, talk to an authorised financial adviser.
Three ways we can boost your Retirement Plan
Our Retirement Booster
Boosts your retirement plan when you stay invested in Vitality funds, and take part in our healthy living programme, while managing the income you draw down on.
Our Healthy Living Discount
Reduces the product charge when you look after yourself with our Vitality Core healthy living programme
Our Investment Booster
Boosts your retirement plan, on top of any returns, when you stay invested in Vitality funds for five years or more.
What are the charges?
Fund charges - for the ongoing management of the funds, plus the cost of buying and selling assets within the investment funds.
Adviser charge – this is what we pass on to your financial adviser for managing your account. The amount is agreed between you and your adviser and not set by us.
You can also link part of the value of the policy to a cash account. The cash account is used to facilitate charges and withdrawals, or as a short-term holding. This account will pay you interest which is calculated daily and added monthly.
Get expert fund managers working for you
Each is designed to help you achieve your financial goals, whether that’s growing your investment, generating an income in retirement or managing the risk you take. Plus, we offer a range of complementary funds from other top providers.
Your questions answered
How can I set up a VitalityInvest Retirement Plan?
You’ll need to have a financial adviser registered to do business with Vitality. You must also be:
- Aged 18 or over
- A UK resident – that’s someone who spends 183 days or more in the UK in the tax year
- A ‘relevant United Kingdom (UK) individual’. That’s someone who:
(a) Has relevant UK earnings subject to income tax for that year
(b) Is resident in the UK at some time during that year
(c) Was resident in the UK at some point during the five tax years immediately before that year, and when they became a member of the pension scheme, or
(d) Has general earnings from overseas Crown employment subject to UK tax in that tax year
If you’re a non-earner, the maximum you can pay into a pension fund in one year is currently £3,600 gross – that’s £2,880 contribution with £720 tax relief.
What happens to my Retirement Plan if I die?
The value of your plan will be paid to your beneficiaries. To determine who these are, we’ll take account of your circumstances when you die, and anyone you’ve said you want your money to go to. Your beneficiaries will then have these options:
- To take all or part of the amount as a lump sum
- To take a flexible income
- To purchase a lifetime annuity
If you’re aged under 75 when you die, the lump sum and/or income payments to your beneficiaries will be tax-free. If you’re 75 or over when you die, your beneficiaries will pay income tax on any lump sums or income they receive.
What's the Retirement Booster?
It’s a way to boost your pension pot every year on top of any returns, helping your savings last longer. Keep more invested in Vitality funds and look after your health, and we could boost your savings by up to 50% of the income you draw down each year. The more you keep invested in retirement, and the more you look after your health, the more you could get back.
Find out more about our Retirement Booster.
How do I receive a boost with the Retirement Booster?
• Open a VitalityInvest Retirement Plan through a financial adviser, and allocate all or part of your money to flexi-access drawdown (the Retirement Booster only applies to the part of your plan allocated to flexi-access drawdown)
• Invest in Vitality funds
• Engage in our healthy living programme
Can I change the funds?
Yes, any time you like. Just contact us or your financial adviser, choose which funds to link your plans to and which ones you would like to remove.
Do I earn interest on my cash account?
Where to get more information
UK Government guidance: They offer free and impartial guidance to help you understand your retirement options. Visit Pension Wise or call 0800 138 3944 to book an appointment. Alternatively, go into your local Citizens Advice Bureau for information on Pension Wise and how to book an appointment.
You can also call organisations like the Pensions Advisory Service on 0300 123 1047 or the Money Advice Service on 0800 138 7777, who produce a guide called Your Pension: It’s Time to Choose. You may find this guide helpful and we recommend you read it before making a decision.
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