When to take your benefits
The earliest and latest you can take your benefits
You can take your benefits from the Plan at any time from your Normal Minimum Pension Age (NMPA) – age 55 (rising to age 57 from 6 April 2028).
However, if you’ve received a quote from the administrator showing what you could receive as a pension from the Plan, this is usually based on your Normal Retirement Age (NRA). This age is set by the Plan and will be older than your Normal Minimum Pension Age. Your NRA is shown on your Retirement pack. If you wanted to take your benefits at a different age from your NRA, you may need consent from the Trustee. You can take your pension at a different age than your NRA, as long as you’re older than your NMPA and younger than age 75.
‘When’ is an important decision
But just because you can take your benefits, it doesn’t necessarily mean you should. There are many things to consider, when deciding when to take your benefits:
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What you could receive from your benefits in the Plan, and from other pensions or retirement savings you may have, including the State pension
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Whether or not you stop working completely
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Your broader circumstances and finances
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Tax implications as you take your benefits
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What your dependants would receive in the event of your death
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The impact on any means-tested benefits you may receive
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How long you may live.
How much you receive from your Plan pension may be affected by when you take it.
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If you take your Plan pension before your Normal Retirement Age, you may receive a lower regular amount as it is expected to be paid for longer.
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Conversely, if you took your Plan pension after you reached your NRA, you may receive more every year, compared to if you’d taken it at NRA as it is expected to be paid for less time.
Other retirement options
If you’d like to take your benefits more flexibly, there are other options you can choose. This may also affect the age at which you decide to draw your Plan benefits.
Learn about your optionsOptions for Plan benefits
When you take your Plan retirement benefits, you can choose one of these options.
1. Receive your pension from the Plan
This option provides a regular income every month, much like a salary, until you die. It may increase each year, in line with the Plan rules, to provide some protection against increases in the cost of living (inflation), and your spouse or eligible dependant(s) may also receive a pension if they outlive you.
In addition, you will have the option of choosing a smaller monthly income in exchange for a cash lump sum, currently tax-free. Typically, the maximum amount that can be taken as tax-free cash is 25% of the value of your pension. The maximum that can be taken as tax-free cash at retirement from all pension arrangements is usually restricted to the Lump Sum Allowance.
View the factsheet about taking your Plan pension Plan benefits.
The Pensions Regulator believes, for most members, it’s likely in their best financial interests to take a pension from the Plan.
With this option, you have:
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A regular income for the rest of your life.
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Potential annual increases to your income – your income may increase each year, to provide some protection against increases in the cost of living (inflation).
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Tax-free cash – The option to choose a smaller monthly income in exchange for an additional cash lump sum, currently tax-free. This tax-free lump sum is typically restricted to a maximum of 25% of the value of your pension (under current tax rules).
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Spouse’s/eligible dependant pension – An income for your spouse or eligible dependant if they outlive you.
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Spouse’s/eligible dependant’s benefit if you die within 5 years of retirement – a lump sum may be payable if you die within five years of taking your Plan pension.
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Temporary bridging pension – You may be able to receive a temporary bridging pension if you retire before State Pension Age (SPA) – you’ll receive a higher pension until SPA, and then your income will reduce once you’ve reached SPA. If this applies to you, more information is provided in your Retirement pack.
But consider:
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Limited flexibility to tailor benefits to suit your needs.
2. Transfer out of the Plan (and consider other options)
You can exchange your Plan pension for an amount of money (called a transfer value). You’d need to use this to secure a retirement income, tailored to your needs, outside of the Plan.
We recommend that you get financial advice before choosing how to take your retirement benefits. If your transfer value is over £30,000 (excluding any additional voluntary contributions (AVCs)) you must take financial advice before you can transfer out to a defined contribution (DC) arrangement.
See the below dropdown for the options available.
See factsheets about your main options in the dropdown if you transfer out.
The Pensions Regulator believes for most members, it is in their best financial interest to take a pension from the Plan. But for some members, the flexible options available through transferring out may better suit their financial interests.
Transferring out cannot be reversed so make sure you understand the risks and benefits.
With this option, you get:
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A pot of cash (a transfer value) to provide you with a retirement income outside of the Plan which can be tailored to suit your needs.
The option to increase or reduce protection for your dependants.
The option to potentially take more cash upfront. Currently, you can typically take 25% of your transfer value tax-free. This amount may be restricted by the Lump Sum Allowance set by the Government.
But consider:
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You’ll need to ensure your money lasts as long as you need it.
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If your funds are invested following transfer, you will take on investment risk and pay ongoing investment charges and advice charges.
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You should be aware of the tax implications. In particular, you could end up paying more tax if you take your money all at once.
The FCA website and video provide additional information to help you understand this option and what you could be giving up. You should also be aware of potential pension scams and only transfer out to a reputable provider. As a rule of thumb, if something sounds too good to be true, it probably is.
If your transfer value is under £30,000 (excluding any Additional Voluntary Contributions) you can choose from one of the options below. If your transfer value is over £30,000 and, after obtaining financial advice, your adviser feels a transfer is appropriate, they may recommend one (or more) of the following options:
Annuity factsheetAnnuity
Transfer out and buy a regular income for life from an insurance company, called an annuity.
Drawdown factsheetDrawdown
Transfer out and withdraw cash as and when you need it.
Cash factsheetCash out
Transfer out and take a single cash lump sum.
If you haven’t done so already, you can get your current transfer value by logging into your account and running a Transfer quote.
Get a Quote >
If you would like to explore each of these options further and compare them with taking your Plan pension, use the Retirement Options tool. You will need to get a Retirement pack from the Plan administrator to use the tool.
More about the Retirement Options ToolThings to consider
How you decide to take your retirement benefits will depend on your personal circumstances. For example, do you have other savings you could rely on? You will need to consider this, and other factors – some are listed below – before you decide.
Your State Pension
Find out more about the State Pension, what it is worth and how to get a quote if you don’t already have one.
How long might you live?
Understanding how long you might live and how long your money needs to last is important for retirement planning.
Inflation and how to protect against it
Make sure you can continue to afford the things you want and need in retirement as goods and services go up in price.
Tax and Allowances
When you are deciding how you want to take your benefits, it is important to consider the tax you would pay.
Avoid pension scams
You can understand how to spot and stop scammers in their tracks in the scams section of helpful resources
Advice and guidance
How you take your benefits when you retire is a big decision and depends on what is right for you. It’s important to have all the information you need to make it.
What is advice?
It may be useful to speak to a financial adviser before making your decision, especially if you are considering a transfer. If your transfer value is over £30,000 (excluding AVCs) you will need to take financial advice before you can transfer out to a DC arrangement and your adviser must be authorised by the Financial Conduct Authority (FCA) to provide advice on pension transfers.
MoneyHelper (a service set up by the Government) has information about finding a financial adviser. You can check if an adviser is regulated by checking the FCA register.
It’s important to remember that the Trustee/Company and Plan administrator are unable to provide you with advice and are not responsible for any advice you receive.
What is guidance?
Financial guidance can help you understand all the options available to you and help you to explore your options in the context of your own personal circumstances. While guidance won’t provide a specific recommendation to you, it can:
help you understand the most suitable options for you;
highlight some of the risks and benefits of the options you’re considering;
explain some of the additional factors and options you may not have thought about; and
help you make an informed choice.
If you’re over the age of 50 and have AVCs or Defined Contribution savings, you’re entitled to a free appointment with Pension Wise (a Government-backed service from MoneyHelper) who can provide you with guidance about these savings. You can arrange a guidance session online or by phone.
They cannot provide you with guidance about a defined benefit (DB) pension like your Plan pension, but MoneyHelper can provide you with information about defined benefit schemes like this one.
Helpful resources
Understand your transfer out options
The Retirement Options tool can help you explore some of your retirement options based on your Plan benefits – and is best for members who are ready to retire.
To use the Retirement Options tool, you’ll need to use the figures which you’ll find with your Retirement pack.
Note: The tool also uses pop-ups, like when you print out your report, so you’ll need to enable them in your browser. Additional support or information is included on the tool if you select the (i) symbols:
Important notes
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The tool is for information purposes only – it provides an overview of your retirement options based on the information you input. You should not take action on the basis of the information provided from this tool alone.
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The tool is not financial advice – for analysis of your personal circumstances, advice on the options available, the risks associated with these options and a recommendation of how to proceed, please contact a FCA regulated financial adviser.
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The figures shown in the tool and on your Retirement pack are based on you being in good health – your Retirement pack should give you more information on the options available from the Plan. What you could get from the Plan could be different if you are in ill-health.
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The tool does not take into account the impact of any tax, in particular, income tax and the Lump Sum Allowance.
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The tool assumes you take a steady income if you have transferred your savings to a drawdown arrangement until the age shown.
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The benefits described in the tool are simplified – the full details are in the Plan’s Rules, which is what determines your benefits.
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This tool is provided by the Trustee of the Plan and is the property of WTW – who can change or stop it at any time with no liability to you. For your security, once you close the tool, the information you provide will not be stored. The tool uses annuity rates provided by HUB Financial Solutions.
Frequently asked questions
How does the Retirement Options tool work?
The tool can only give you an indication of your options so you shouldn’t rely on it alone to make any decisions. Amounts shown are based on the information that you provide, and assumes you’re ready to retire now, and The annual increases on your Plan pension, shown in the graph view, are based on the Rules of the Plan and in some cases, assumptions have been made where these increases are linked to inflation. The actual annual increases you receive each year are set in accordance with the Plan trust deed and rules.are in good health.
The tool does not take into account the impact of any tax, in particular, income tax and the Lump Sum Allowance, or the impact of increases in the cost of living (inflation).
The tool does not show how you might take your AVCs at retirement. For more information about AVCs, please refer to your Retirement pack.
Important: The Retirement Options tool is not financial advice. You should discuss your specific circumstances with an FCA-Registered financial adviser before making a decision.
How up to date are these figures?
Please see your Retirement pack for the date of your pension figures and your transfer value. For the illustration of a regular income, an assumption has been made regarding the annuity rates available to purchase in the open market. The rate used is updated monthly and is based upon annuity rates as provided by HUB Financial Solutions.
Are the figures in the Retirement Options tool guaranteed?
No. In practice, if you choose to transfer your benefits out of the Plan then the amount you will receive each year will depend on how your benefits are invested and how these investments perform over time, or the annuity rates on offer at the time if you choose to purchase a pension in the future. A financial adviser can help to choose the right option for you.
Is my data secure?
It’s important and understandable that you may be concerned about providing detailed personal data. You’ll need to supply only relevant information, and you can control what information you provide in the tool. The information you provide is not stored once you close the tool. For more information, see the Data and Privacy Policy
I have a technical problem using the Retirement Options tool – where do I get help?
Please contact the Plan’s administrators using the contact details below:
Email: RBCPensions@wtwco.com
Call: 01737 230 494
MoneyHelper retirement tools and support
MoneyHelper – a service set up by the government – has many useful tools and information that could help you with your decisions about your defined benefit pension.
Use their website, or contact them (Monday to Friday 9 am to 5 pm) by their webchat or their helpline on 0800 011 3797.
Pension calculator
Understand what you may need in retirement, and how much you have.
Compare annuities
Shopping for an annuity? This comparison tool can help you see what’s available on the market.
Guidance from Pension Wise on DC savings
If you have any DC savings and are over 50 years old, you can have a self-guided appointment online or a free guidance call with a pension specialist from Pension Wise (part of MoneyHelper) about these DC benefits only.
Resources from other organisations
Retirement Living Standards
Pensions UK has provided a guide to how much you may spend in retirement, to maintain different living standards.
FCA guide to transferring out
More information about transferring out from the Plan and what to think about.
Do you earn enough for a decent standard of living?
The minimum income calculator can help you see what your costs will be and what benefits you may be entitled to.
Don’t let a scammer enjoy your retirement
Scammers have always existed, but in recent years have become more sophisticated. Be vigilant. Protect yourself with the resources created by external regulatory bodies below:
The Pensions Regulator (TPR) are concerned about the rise in pension scams and believe anyone can be the victim of a pension scam, no matter how financially savvy they think they are.
Scammers appear professional and it’s becoming increasingly harder to spot the difference between something that’s credible and something that’s fraudulent.
Find out how pension scams work, how to avoid them, and what to do if you suspect a scam.
Step-by-step guide to taking your benefits
Once you’ve reviewed your options and considered what’s best suited to your unique circumstances, you can begin the process of taking your benefits. It’s a good idea to give yourself time – around 6 months.
There are a few steps that need to be taken to be sure you can do this when you want to:
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1. 6 months or more to go: Make a plan
A number of things may affect when and how you take your benefits. It’s important to consider your unique circumstances when planning for retirement, for example, your financial needs, your total savings, tax position and how long you might live. There’s plenty of information on the specific aspects you should consider in Considerations.
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2. 4 months to go: Get your quote
If you haven’t already received a Retirement or Transfer Pack in the post, and you’d like to know how much you can expect to receive, you can get one by logging into your pension online.
We recommend you do this 4 months before you want to take your benefits to allow enough time to consider your options and make your choice.
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3. 3 months to go: Review your quote and understand your retirement options
You have options of how to take your retirement benefits/savings. There’s also valuable support available to help you make your choice(s). Find out more about your retirement options and use the ‘Retirement Options tool’.
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4. 3 months to go: Get advice or guidance
Before choosing how to take your benefits, you could consider taking FCA regulated financial advice. You are required to take advice if you wish to transfer your benefits out of the Plan to a DC arrangement and your transfer value is greater than £30,000, (excluding AVCs). You can find an independent financial adviser on the MoneyHelper website.
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5. 1 month to go: Apply to take your benefits
When you’re ready to make your decision, you’ll need to complete the form that you received with your Retirement pack and return it , along with any supporting documentation as indicated on the form.
It may take around a month to arrange payment of your benefits – longer if you have AVCs – so you should give yourself time for this part of the process.
Not ready yet?
No worries, you don’t have to do anything if you do not want to. You can reconsider your options in the future when you are ready to take your benefits.
Contact us
If you have any questions about your Plan pension benefits you can contact the Plan’s administrator, on:
Address: RBC (UK) Pension Plan, Sunderland, SR43 4JU
Telephone: 01737 230 494, Monday – Friday, 9am to 5pm excluding bank holidays
Email: RBCPensions@wtwco.com
This information has been provided by the RBC (UK) Pension Plan based on pensions and tax law and the provisions of the Trust Deed and Rules of the Plan at the date it was written. This website is not a definitive statement of the law or the Plan Rules. It is not exhaustive or legally binding and you should not rely on this website alone. In the event of any discrepancy between this website and the Plan Trust Deed and Rules and/or applicable law, the Plan Rules and/or applicable law will prevail. By continuing to use this website you’re accepting its purpose and any limitations.
External links and external content are selected and reviewed when the website is published. Neither the Plan, the Trustee nor any of their advisers are responsible for the content of external websites. The inclusion of a link to an external website should not be understood to be an endorsement of that website or the site’s owners (or their products/services).