Frequently Asked Questions (FAQs)

You can usually take up to 25% of your pension savings, currently tax-free. However, any pension income above this (whether from an annuity, drawdown or taxable cash) is taxed in the same way as earnings. But, unlike earnings you do not make National Insurance contributions on your retirement income. You will pay tax at your marginal tax rate, which will depend on the amount of income you receive from all sources. Please note if you are currently employed and receiving a salary, taking your retirement savings could potentially mean that you move up to a higher tax band. In addition, if you decide to take all of your pension savings as a cash lump sum in one go, this could mean that you end up paying more tax, as you may move up to a higher tax band.

This video by HUB Financial Solutions explains how tax works

The Annual Allowance applies to all savings you make into a registered pension arrangement, which restricts the amount that you (and your employer) can save each tax year without incurring a tax charge. The standard Annual Allowance for the current tax year can be found here, please note this reduces if you have a ‘high’ income.

A separate Money Purchase Annual Allowance will apply to you, irrespective of your income, if you access your pension savings flexibly and take a taxable income whilst still saving into a pension arrangement (other than the Honeywell Retirement Plan). This includes taking taxable income from a drawdown arrangement, as well as the taxable part of a cash lump sum, known as an Uncrystallised Funds Pension Lump Sum or UFPLS. It doesn’t apply if you buy an annuity. Once the Money Purchase Annual Allowance is triggered, this restricts the amount that you (and your employer) can save into a money purchase (defined contribution) pension arrangement each tax year without incurring a tax charge. The Money Purchase Annual Allowance is currently £10,000 a year.

Therefore, if you are planning to continue working and/or saving into a pension arrangement after taking your pension savings, other than the Honeywell Retirement Plan, you should take the Money Purchase Annual Allowance into account when deciding which option to take.

In addition to any pension savings you have built up in the Plan, you may also receive a State Pension payable from your State Pension Age. Your State Pension Age will depend on when you were born. Use the Government’s State Pension Checker to find out how much State Pension you can get, and from what age.

This will depend on where you live/move to. We would recommend obtaining authorised financial advice if this applies to you as the tax implications may be complicated.

This will depend on the benefits you have chosen to purchase. If you have purchased an annuity, you won’t be able to change its features or your provider afterwards so it is important to shop around beforehand. If you have transferred your savings to a drawdown account, you will still usually have the option to transfer your savings to an alternative provider or to purchase an annuity (or cash in your pension account).

The Pensions Regulator is the UK supervisory body for occupational pension plans (such as, the Honeywell Retirement Plan). The Regulator is responsible for monitoring the running of occupational pension plans to ensure the protection of member benefits. You can contact the Regulator on 0845 600 0707 or go to thepensionsregulator.gov.uk

We hope that the retirement process runs smoothly for you. However, if you do have an issue or complaint, please contact the Plan’s administrator, Willis Towers Watson, and they will let you know how to take the matter further.

• Email: honeywellretirementplan@willistowerswatson.com
• Call: +44 (0) 800 916 8088

If you are unable to resolve your issue through Plan’s administrator, having followed the Trustee’s dispute resolution procedure where relevant, then you can contact the Money and Pensions Service by calling 0115 965 9570. They should be able to assist you and answer any questions you may have. You could also go to their website at moneyandpensionsservice.org.uk

If your concern cannot be satisfactorily resolved, you can then refer it to the Pensions Ombudsman. The Pensions Ombudsman is an impartial organisation set up to investigate complaints about how a pension plan is run.

The Pensions Ombudsman can be contacted at:

10 South Colonnade,
Canary Wharf,
London,
E14 4PU

• Email: enquiries@pensions-ombudsman.org.uk
• Call: 0800 917 4487
• Website: pensions-ombudsman.org.uk

You can also submit a complaint form online:

www.pensions-ombudsman.org.uk/submit-complaint

Please follow this link for a guide on how to use the Illustrator.

We appreciate members’ concerns around providing detailed personal data. The information you provide is not stored anywhere on our systems once you close the Illustrator. We ask you to input the information in the Illustrator and we only request relevant details. For more information please see the Data and Privacy Policy.

No. The tool provides an illustration of what you could receive in the future to help you understand the different options, rather than to provide guaranteed income projections.

Please contact the Plan’s administrator using the contact details below:

• Email: honeywellretirementplan@willistowerswatson.com
• Call: +44 (0) 800 916 8088

There are a number of assumptions underlying this Illustrator. These assumptions are noted below. For more information about these, we recommend discussing this with a financial adviser.

The Illustrator can only give you an indication of your options so you shouldn’t rely on it alone to make any decision. Investment changes are hard to predict. It is also based on the information that you input.

For more information about the below assumptions, we recommend discussing this with your financial adviser.

• The Illustrator is not financial advice
• The Illustrator assumes you’re in good health
• The illustrations do not take into account the impact of any tax, in particular, income tax and the Lifetime Allowance
• The illustrations assume you take a steady income if you have transferred your savings to a drawdown arrangement.

Please see your Pension Statement or ePA for the date of your HRP account 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 market annuity rates as provided by HUB Financial Solutions

Please see the Decide page for details on how to do this.