Pension Annuity
Key Features
This brochure outlines the key
features of the Just Retirement
Pension Annuity.
The Financial Conduct Authority is a financial services
regulator. It requires us, Just Retirement, to give you
this important information to help you to decide whether
our Pension Annuity is right for you. You should read this
document carefully so that you understand what you are
buying, and then keep it safe for future reference.
Please read this document together with your personal
quotation which shows the benefits available to you.
If you have any questions please speak to your
financial intermediary.
Contents
Key features of the Pension Annuity2
Its aims
2
Your commitment
2
Risks
2
Questions and answers
3
Further information
5
Glossary
6
Compensation
7
What to do if you are unhappy
7
About Just Retirement Limited
7
Key features of the Pension Annuity
Key features of the Pension Annuity
Its aims
Risks
• To pay you a secure income that is guaranteed for life.
• Once the 30 day cancellation period has expired and
• To give you the opportunity to arrange retirement
benefits suited to your personal and family
circumstances. Please see the ‘questions and answers’
section for details of the options available.
• To provide a higher income than a standard annuity
based on your personal, health and lifestyle information.
Your commitment
• To use your pension fund to buy the Just Retirement
Pension Annuity.
• To make a once-and-for-all decision about the
amount of guaranteed lifetime income and the type
of retirement benefits you want.
• To answer all personal, health and lifestyle questions
truthfully, accurately, and to the best of your knowledge
so we can pay you the amount of income you are
entitled to.
your Pension Annuity has been set up you cannot
change your payment options, even if your personal
circumstances change. You will not be able to cash in
your Pension Annuity.
• If you die in the early years of retirement and you have
not selected a dependant’s income and/or one of the
other death benefit options, the income will stop and
the total income you receive may be less than the
pension fund used to purchase the Pension Annuity.
Please see the ‘questions and answers’ section for details
of dependant’s income and the other death benefit
options available.
• Depending on the income option you choose, inflation
may reduce the real spending power of your income
payments over time. Please see the ‘questions
and answers’ section for details of the income
options available.
• If we find out that the personal, lifestyle or health
information provided to us is incorrect we may reduce
your income to recover any extra amount we have
paid to you, or if reasonable, cancel the policy and
cease payments.
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Questions and answers
What is a pension annuity?
Can I take a tax-free lump sum?
A pension annuity is a way of turning your pension fund
into a secure income that is guaranteed for life.
You are able to take a tax-free lump sum of up to 25%
of the value of your pension fund, as long as you have
not already received this from your existing pension
provider. The tax-free lump sum is also known as a
‘Pension Commencement Lump Sum’, or ‘PCLS’.
What is the difference between a ‘standard’ and
‘enhanced’ pension annuity?
Just Retirement’s Pension Annuity is an ‘enhanced’ annuity,
also known as an ‘individually underwritten annuity’. This
aims to provide you with a higher level of guaranteed
lifetime income than you would get from a ‘standard’
annuity by taking into consideration detailed personal,
health and lifestyle information.
How much income will you pay me?
We have enclosed a personal quotation with this Key
Features Document. This shows how much income you
might expect to receive based on an assumed value of your
accumulated pension fund and the combination of options
you have selected.
If the final value of your pension fund is higher or lower
than the amount shown, the level of your retirement
income will change accordingly.
What income options do I have?
You can have an income that remains the same for the rest
of your life, or you can choose one of the following income
escalation options:
• Income which increases each year by a fixed percentage.
• Income which increases or decreases in line with inflation.
• Income which increases in line with inflation, but will
not decrease.
If you choose an income escalation option, you will start
off with a smaller income.
How often can I receive my income payments?
You can choose to receive your income payments monthly,
quarterly or annually. You can receive your income in
advance or in arrears.
What if I need access to a larger amount?
If you need access to a larger amount you can also take a
taxable lump sum, although you must leave at least £2,000
with which to purchase guaranteed lifetime income. The
taxable lump sum will be taxed as earned income.
Please be aware that if you take a taxable lump sum,
you will be deemed to have accessed your pension
‘flexibly’, and this will reduce your ability to make further
contributions to a money purchase or hybrid pension
scheme. For further information, please read our ‘Annual
allowance factsheet’ available at www.justretirement.com.
If you take a tax-free lump sum and/or a taxable lump sum,
the amount of guaranteed lifetime income you’ll be able
to purchase will be lower than if you hadn’t taken a lump
sum payment.
Can I protect my spouse, civil partner or
other dependant?
You are able to do this by selecting the dependant’s
income option:
• You can choose for all or part of your income to be paid
to a named dependant in the event of your death.
• This could be your spouse, partner or someone else who
is financially dependent on you.
• You can specify how much income they will receive, up
to 100% of your income level.
Selecting dependant’s income will reduce the amount of
guaranteed lifetime income you receive each year.
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3
Key features of the Pension Annuity
Can I pass on my pension fund when I die?
Can I cancel if I change my mind?
You are able to choose one of the following death
benefit options:
You can cancel your application before the annuity is
set up, and up to 30 days after receiving an ‘Important
information about your right to cancel’ form, which we
will send with your policy documents.
• By selecting the value protection option, you can
protect a chosen percentage of your pension savings
so that when you die the unused portion will be paid
as a lump sum to a beneficiary or beneficiaries.
• Alternatively, by selecting a guaranteed payment
period, you can guarantee your income so that in
the event of your death it will continue to be paid for
a specified period of time between one and 30 years.
(The maximum length will be 10 years if your income
is being paid as ‘scheme pension’, we will inform you
if this is the case.)
Selecting one of the death benefit options will reduce
the amount of guaranteed lifetime income you receive
each year.
How can I be sure I am selecting the combination of
options that best suits my personal circumstances?
Most of the options described above will change the
amount of guaranteed lifetime income you receive each
year. You should take this into account and balance it with
your personal circumstances and needs.
To help you find the right combination of options, you
can ask for several different quotes to see how much
difference each option makes to the guaranteed lifetime
income payable.
Please note that some types of pension fund may require
certain options to be included automatically because of
legislation. For example, if your pension fund includes
Guaranteed Minimum Pension (GMP) you may have to
include an income for a spouse or civil partner at a set rate.
4
If you decide to cancel your annuity, you must return the
‘Important information about your right to cancel’ form,
and any tax-free lump sums and income already paid to
you. Once the 30 day cancellation period has expired, you
will not then be able to cancel your annuity.
On receipt of your request to cancel, we will attempt
to return your money to your original pension scheme
provider, but if this company is not willing to accept a
refund, it is your responsibility to gain agreement from
another company to accept your money and inform us
who this is.
What are Just Retirement’s charges?
The charges to set up and administer the policy will be
calculated at the start of the policy and will be reflected
in the income provided.
What advice charges or commission do I pay?
• Adviser charge. If you have received advice from a
financial adviser, and want Just Retirement to facilitate
the adviser charge from your policy, this charge will be
reflected in your personal quotation. If this is the case,
your financial intermediary should have discussed and
agreed this with you before asking you to sign the
application form.
• Commission. If you haven’t received advice, but have
received help and information from an intermediary
in arranging your policy with us, then we may pay
commission to them. The details of any commission
due will be shown in your personal quotation.
Call 01737 233297 or visit www.justretirement.com
Further information
Tax
Your guaranteed lifetime income and, if applicable, your
taxable lump sum will be taxed according to instructions
from your local tax office. Income of this type is taxed
under the Pay As You Earn (PAYE) system.
Any death benefits payable may be subject to tax. We
set out below an overview of the tax position. The tax
treatment of death benefits is subject to legislation. Tax
treatment depends on individual circumstances and may
be subject to change in the future. Please speak to your
financial intermediary for further details.
Any value protection lump sum may be subject to tax:
If you die
Then
Before age 75
The lump sum will be free of tax.
Aged 75 or above
If you die before 6 April 2016,
the lump sum is subject to a
tax charge of 45%. If you die
on or after 6 April 2016, the
lump sum is subject to tax at
the recipient’s marginal rate of
income tax.
Any income paid after your death to your dependant or
other beneficiary may also be subject to tax:
If you die
Then
Before age 75
The income will be free of tax
unless your benefits were paid as
scheme pension. If your benefits
were paid as scheme pension,
income payments following your
death will be subject to tax at
the recipient’s marginal rate of
income tax.
Aged 75 or above
Tax treatment depends on individual circumstances and
may be subject to change in the future.
Law
The law applicable to the terms and conditions of the
contract shall be English Law. The contract will be written
in English.
The information set out in this Key Facts document
represents our understanding of the law and HM Revenue
and Customs practices as at the date of publication. Changes
to tax rules and other laws may affect the contract terms
Client categorisation
There are various categories of client set out under financial
regulations. Just Retirement will treat you as a ‘retail client’
which gives you the greatest level of protection, and
ensures you get full information about any products
you buy.
Queries
For further information about the Pension Annuity
please contact:
Just Retirement Limited
Vale House
Roebuck Close
Bancroft Road
Reigate
Surrey RH2 7RU
Tel: 01737 233297
Fax: 01737 227113
(Lines are open Monday – Friday 8:30am to 5:30pm, local
call rates apply)
Email: customer@justretirement.com
The income will be subject to
tax at the recipient’s marginal
rate of income tax.
Call 01737 233297 or visit www.justretirement.com
5
Key features of the Pension Annuity
Glossary
Adviser Charge
Marginal Rate
The amount you agree to pay your financial
intermediary for the advice they have provided.
This will be reflected in your personal quotation.
Marginal rate means that you pay a specified rate
of tax on a certain portion of salary. For example,
for most people who earn £45,000 the income
between £42,385 and £45,000 (£2,615) will be
taxed at the rate of 40% (for the 2015/16 tax
year). The lower part of your income will be taxed
at the lower tax rates.
Annual Allowance
The maximum amount you can make in pension
savings each year before a tax charge applies.
Please ask your financial intermediary for more
details.
Pay As You Earn (PAYE)
If you have not received advice from your
financial intermediary, but have received help and
information from them, we may pay commission
to them. The details of any commission to be paid
will be shown in your personal quotation.
The system for paying income tax and national
insurance contributions. Tax and national insurance
are automatically deducted by your employer or
pension scheme before your wages or pension
income are paid to you. National Insurance
Contributions are not currently due on pension
income.
Death benefit options
Retirement benefits
The collective name used to describe the
dependant’s income, value protection and the
guaranteed payment period options. You can
choose dependant’s income and/or one other
option when you purchase a Pension Annuity.
The name used to describe the different
payment options available from the Pension
Annuity. These are:
Commission
Facilitated Adviser Charge
A way of paying your Adviser Charge. If you ask
us to facilitate your Adviser Charge, we will pay
this to your financial intermediary before using
the remaining funds to purchase guaranteed
lifetime income.
• guaranteed lifetime income
• a tax-free lump sum
• a taxable lump sum
• dependant’s income
• value protection
• a guaranteed payment period of up to
30 years, and
• income escalation.
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Compensation
About Just Retirement Limited
Just Retirement is covered by the Financial Services
Compensation Scheme (FSCS). You may be entitled to
compensation from the scheme if we cannot meet our
obligations. This depends on the type of business and the
circumstances of the claim. Further information about
compensation arrangements is available from the FSCS,
or at www.fscs.org.uk
Just Retirement Limited is incorporated as a company
limited by shares. Registered in England No. 05017193.
What to do if you are unhappy
The first step is for us to understand the problem. You
can share your concerns with our staff either in person,
by telephone, fax, email or letter as follows:
Tel: 01737 233297
Fax: 01737 227113
(Lines are open Monday – Friday 8:30am to 5:30pm,
local call rates apply)
Email: complaints@justretirement.com
Or write to:
The Customer Service Manager
Just Retirement Limited
Vale House
Roebuck Close
Bancroft Road
Reigate
Surrey RH2 7RU
Just Retirement’s registered Office is at Vale House,
Roebuck Close, Bancroft Road, Reigate, Surrey RH2 7RU.
Just Retirement is a UK authorised insurance company
authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the
Prudential Regulation Authority. Our Financial Services
Register number is 232595.
You can ask us for full details of the contractual terms and
conditions. Our address and contact details are below.
Just Retirement Limited
Vale House
Roebuck Close
Bancroft Road
Reigate
Surrey RH2 7RU
Tel: 01737 233297
Fax: 01737 227113
(Lines are open Monday – Friday 8:30am to 5:30pm,
local call rates apply)
Departmental email: support@justretirement.com
Customer support email: customer@justretirement.com
Should you feel that your complaint is not dealt with to
your satisfaction, you can take the matter up with the
Financial Ombudsman Service at:
Exchange Tower
London
E14 9SR
Tel: 0845 080 1800
Making a complaint will not prejudice your right to take
legal proceedings. A copy of our complaints procedure is
available in the Customer Support section of our website.
Please visit www.justretirement.com/Customer-support/Ihave-a-question/For-annuity-customers to find out more.
Call 01737 233297 or visit www.justretirement.com
7
For more information contact:
Telephone: 01737 233 297
Lines are open Monday to Friday, 8.30am to 5.30pm.
Email us: policy.admin@justretirement.com
Or log onto our website for further information:
www.justretirement.com
Just Retirement Limited. Registered Office: Vale House, Roebuck Close, Bancroft Road, Reigate,
Surrey RH2 7RU. Registered in England Number 05017193. Just Retirement Limited is authorised
by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the
Prudential Regulation Authority. Please note your call may be monitored and recorded, and call
charges may apply. Please contact us if you would like this document in an alternative format.
All copyright works and trade marks are owned by their respective proprietors.
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