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Transfer and choose to take it all as cash

At a glance

If you choose to transfer out of the Scheme and take a cash lump sum, you’ll have:

  • A single cash lump sum – your transfer value
  • Tax-free cash – the option to take up to 25% of your transfer value as a tax-free cash lump sum at the point you retire
  • To pay tax on the remainder of your cash lump sum (possibly at a higher level than you are used to)
  • No guaranteed income for your retirement

Ben’s choice

Because Ben had other pension savings, which would provide him with more than sufficient income in retirement, he wanted to take his Scheme pension as a cash lump sum. So, after taking financial advice, he transferred out of the Scheme, took a cash lump sum and used the money, after tax, to enjoy his hobbies.

Ben’s choice is just an example and does not suggest a particular option that you should choose yourself. Please look at all of the options available to you and consider seeking independent financial advice before making any decisions about your own benefits.

Why this option might suit you

Here is a list of characteristics that this option provides or doesn’t provide. Have a look through and see if these characteristics suit your personal circumstances. You may be required to take financial advice to access this option.

The reassurance of a regular income for life NO Taking a single cash lump sum will not provide you with the reassurance of a regular income for life.
Pension increases to protect against inflation NO(FOR SOME ELEMENTS OF PENSION) You will not have any guaranteed protection against increases in the cost of living (inflation).
A pension for my eligible dependant on my death NO You can leave any leftover money to your eligible dependant (some of which may be subject to tax) but there is no pension payable to them.
Leaving an “inheritance” YES You can pass on your remaining money to your eligible dependants when you die (some of which may be subject to tax).
Something easy to manage YES If you don’t invest the money.
Money to use now YES You get all of it (some of which is subject to tax and you may get a large tax bill).
The flexibility to change my income when I like / need NO It’s a single cash lump sum
The ability to invest my money myself YES You can choose to invest any of your money through self-investment.
Suitable if I expect to live a long time UNLIKELY You control how much you spend over time, so this depends on how you manage your money and how long you live.

t’s worth noting that on average (based on national figures from the Office for National Statistics) we’ll live until our mid-80s, however there’s a 1 in 4 chance you’ll live in to your 90s and 3 in every hundred people retiring now will live to be 100 years old.
To help you decide which retirement option is right for you, the Trustee has arranged for Origen Financial Services to provide eligible Scheme members with one round of paid-for financial advice. This includes regulated advice in relation to the transfer option. For more information go to the Decide page.
Tax

Tax-free cash lump sum

  • You can take some of your benefits as tax-free cash (usually up to 25% of your transfer value).
 Income (subject to tax)

  • The remainder of your cash lump sum is taxed at your marginal rate of income tax for that year
  • Taking all of your benefits as a single cash lump sum is likely to increase the amount of tax you pay as the lump sum will increase your income in the year you take your benefits
  • You may need to pay further tax charges on any investment returns generated by investing the cash lump sum outside of a pension / drawdown arrangement.
The contract for the advice would be between you and Origen and the advice provided is confidential. It is your choice whether to use Origen. The Trustee and Aptia (formerly Mercer) are not responsible for any advice you receive or any decisions you make, or actions you take, as a consequence of receiving advice.
Built on behalf of the The First Bus Retirement Savings Plan by Willis Towers Watson. The information
  • is a summary of the applicable law and the Scheme’s trust deed and rules as at May 2021
  • is not a definitive statement of the applicable law or the Scheme’s trust deed and rules and is not legally binding
  • does not constitute financial advice or create any entitlements for members (or anyone else) in relation to the Scheme
In the event of any discrepancy between the information on this website and the applicable law and / or the Scheme’s trust deed and rules, the applicable law and / or the trust deed and rules will prevail.
You should not rely on the information on this website alone and you should consider seeking independent advice before making any decisions in relation to your pension savings (but noting that the Scheme, the Trustee and WTW are not responsible for any advice you receive or any decisions you make or actions you take as a consequence of receiving advice). The applicable law is likely to change over time, and so you should also keep an eye out for any developments which may affect you as you approach retirement. By continuing to use this website you’re accepting its purpose and any limitations.
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© 2024 The Scheme is governed according to the provisions of its formal Rules as well as applicable law. Material on this Portal provides commentary on pension developments for general information and in relation to your pension in the Scheme Material on this Portal also summarises the Rules and some applicable law. However, this Portal is not intended to replicate the Rules and to the extent that any material on the Portal contradicts the Rules, the provisions of the Rules will always take precedence. The material on this Portal is based on the Trustee’s understanding of tax and other legislation in force as of June 2024.