- You can decide how to use your ITV DC savings to provide income in retirement. There are 3 main options: Cash, Flexible Access and Pension, although not all your options are available directly through the ITV DC Plan.
- You can start using your ITV DC savings from age 65, although if your employer agrees, you can start using them from age 55.
- You may also be able to start accessing your savings while you’re still working for ITV provided your employer consents.
- Take all of your ITV DC savings as cash, either as one-off cash (a one-off lump sum) or multiple cash (a series of up to 5 lump sums).
- Currently, 25% of each withdrawal would be paid tax free and the rest would be taxable.
- The one-off cash and multiple cash options are designed for members who plan to withdraw their ITV DC savings in one or a few lump sums over a relatively short period of time, for example 5 years or less.
- This option is designed for members who want to access their ITV DC savings flexibly.
- Transfer your ITV DC savings to a provider of your choice and then take up to 25% of your savings as tax-free cash and access the rest of your savings throughout your retirement to suit you. You can vary the amount you withdraw, when you withdraw savings, and how many withdrawals you make to suit your circumstances. Each withdrawal would be subject to tax.
- The Flexible Access option allows you to vary your income each year to suit your needs. It’s designed for members who plan to withdraw savings as soon as they retire and throughout their retirement, for members who don’t plan to withdraw savings for several years after retirement, or for members who may plan to leave savings to their beneficiaries when they die.
This option is designed for members who want a fixed income.
- Take up to 25% of your ITV DC savings as cash (currently tax free) and use the rest to buy a pension (also referred to as an annuity), normally from an insurance company.
- There are lots of different types of pension to choose from including: a pension that continues being paid to your dependants at an agreed rate after you die, one that is paid at a fixed rate throughout your retirement or a pension that increases each year.
- Once you have chosen the type of pension you want, you can’t change your selection once your pension starts being paid (for example, to add a pension for a partner or spouse or to remove a spouse’s pension if your spouse dies before you).
Transferring your savings out of the Plan
Transferring your ITV DC savings out of the Plan to an insurance company will give you access to other options not offered by the ITV DC Plan. These options have different features, rates of payment, charges and tax implications, as well as different rates for converting your savings into pension if you decide you want to use your savings to provide an annual income.
Finding out more
ITV Pensions will send you details of your options as you approach age 65. If you’d like more details before that, please contact ITV Pensions on 01772 884488 for details.